ABR vs ACRE

For growth investors, Ares Commercial Real Estate Corporation (ACRE) is the stronger pick with -2.

8% revenue growth year-over-year, versus -12. 7% for Arbor Realty Trust, Inc. (ABR). Arbor Realty Trust, Inc. (ABR) offers the better valuation at 7. 0x trailing P/E (11. 4x forward), making it the more compelling value choice. Analysts rate Arbor Realty Trust, Inc. (ABR) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Arbor Realty Trust, Inc.

is actually cheaper at 11. 4x.

Over the past 5 years, Arbor Realty Trust, Inc.

(ABR) delivered a total return of -7. 8%, compared to -28. 2% for Ares Commercial Real Estate Corporation (ACRE). Over 10 years, the gap is even starker: ABR returned +202. 9% versus ACRE's +45. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ares Commercial Real Estate Corporation (ACRE) is the lower-risk stock at 0.

99β versus Arbor Realty Trust, Inc. 's 1. 03β — meaning ABR is approximately 4% more volatile than ACRE relative to the S&P 500. On balance sheet safety, Ares Commercial Real Estate Corporation (ACRE) carries a lower debt/equity ratio of 2% versus 3% for Arbor Realty Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ares Commercial Real Estate Corporation (ACRE) is pulling ahead at -2.

8% versus -12. 7% for Arbor Realty Trust, Inc. (ABR). On earnings-per-share growth, the picture is similar: Ares Commercial Real Estate Corporation grew EPS 97. 4% year-over-year, compared to -32. 6% for Arbor Realty Trust, Inc.. Over a 3-year CAGR, ABR leads at -1. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arbor Realty Trust, Inc.

(ABR) is the more profitable company, earning 42. 2% net margin versus -1. 1% for Ares Commercial Real Estate Corporation — meaning it keeps 42. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACRE leads at 72. 4% versus 61. 1% for ABR. At the gross margin level — before operating expenses — ABR leads at 90. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arbor Realty Trust, Inc.

(ABR) trades at 11. 4x forward P/E versus 16. 9x for Ares Commercial Real Estate Corporation — 5. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ABR: -3. 5% to $8. 00.

All stocks in this comparison pay dividends.

Arbor Realty Trust, Inc. (ABR) offers the highest yield at 23. 2%, versus 13. 6% for Ares Commercial Real Estate Corporation (ACRE).

For long-horizon retirement investors, Arbor Realty Trust, Inc.

(ABR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 03), 23. 2% yield, +202. 9% 10Y return). Both have compounded well over 10 years (ABR: +202. 9%, ACRE: +45. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ABR is a small-cap deep-value stock; ACRE is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.