Comparing ACRES Commercial Realty (NYSE:ACR) & Manhattan Bridge Capital (NASDAQ:LOAN)

Manhattan Bridge Capital (NASDAQ:LOAN) and ACRES Commercial Realty (NYSE:ACR) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Manhattan Bridge Capital and ACRES Commercial Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	2	0	0	2.00
ACRES Commercial Realty	1	1	2	0	2.25

ACRES Commercial Realty has a consensus price target of $24.50, suggesting a potential upside of 139.44%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, analysts plainly believe ACRES Commercial Realty is more favorable than Manhattan Bridge Capital.

Earnings and Valuation

This table compares Manhattan Bridge Capital and ACRES Commercial Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$6.60 million	6.11	$5.11 million	$0.42	8.40
ACRES Commercial Realty	$79.95 million	0.91	$21.32 million	($1.12)	-9.14

ACRES Commercial Realty has higher revenue and earnings than Manhattan Bridge Capital. ACRES Commercial Realty is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Manhattan Bridge Capital has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are held by institutional investors. 24.6% of Manhattan Bridge Capital shares are held by company insiders. Comparatively, 4.6% of ACRES Commercial Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Manhattan Bridge Capital and ACRES Commercial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	58.30%	11.02%	7.59%
ACRES Commercial Realty	22.62%	2.42%	0.58%

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.