NREF
NexPoint Real Estate Finance, Inc.
REIT - Mortgage
Market Cap$295M
5Y Perf.-3.3%
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Stock Comparison
NREF vs ACRE
Revenue, margins, valuation, and 5-year total return — side by side.
ACRE
Ares Commercial Real Estate Corporation
REIT - Mortgage
Market Cap$280M
5Y Perf.-32.2%
NREF vs ACRE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | NREF | ACRE |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $295M | $280M |
| Revenue (TTM) | $126M | $55M |
| Net Income (TTM) | $105M | $-20M |
| Gross Margin | 90.2% | 46.3% |
| Operating Margin | 128.8% | 44.6% |
| Forward P/E | 9.6x | 16.3x |
| Total Debt | $4.46B | $1.05B |
| Cash & Equiv. | $34M | $29M |
NREF vs ACRE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
NREF
ACRE
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| NexPoint Real Estat… (NREF) | 100 | 96.7 | -3.3% |
| Ares Commercial Rea… (ACRE) | 100 | 67.8 | -32.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NREF vs ACRE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: NREF leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Ares Commercial Real Estate Corporation is the stronger pick specifically for dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
NREF
NexPoint Real Estate Finance, Inc.
The Real Estate Income Play
NREF carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.79, yield 3.7%
- Rev growth 14.3%, EPS growth 189.2%, 3Y rev CAGR 46.2%
- 50.8% 10Y total return vs ACRE's 43.3%
Best for: income & stability and growth exposure
ACRE
Ares Commercial Real Estate Corporation
The Real Estate Income Play
ACRE is the clearest fit if your priority is dividends.
- 14.1% yield, vs NREF's 3.7%
Best for: dividends
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | NREF | 14.3% FFO/revenue growth vs ACRE's -2.8% |
| Value | NREF | Lower P/E (9.6x vs 16.3x) |
| Quality / Margins | NREF | 83.3% margin vs ACRE's -36.3% |
| Stability / Safety | NREF | Beta 0.79 vs ACRE's 0.99 |
| Dividends | ACRE | 14.1% yield, vs NREF's 3.7% |
| Momentum (1Y) | NREF | +23.5% vs ACRE's +20.7% |
| Efficiency (ROA) | NREF | 2.0% ROA vs ACRE's -1.3%, ROIC 2.3% vs 2.9% |
NREF vs ACRE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
NREF vs ACRE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLNREFLAGGINGACRE
ACREAres Commercial Real …
2leads
NREFNexPoint Real Estate …
3leads
6 Total Categories
CATEGORYLEADERvs ACREMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
NREF5/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ACRE5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
NREF6/6
Risk & VolatilityBeta, volatility, and downside exposure
NREF2/2
Analyst OutlookRatings, price targets, and dividends
ACRE1/1
Income & Cash Flow (Last 12 Months)
NREF leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NREF is the larger business by revenue, generating $126M annually — 2.3x ACRE's $55M. NREF is the more profitable business, keeping 83.3% of every revenue dollar as net income compared to ACRE's -36.3%.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| RevenueTrailing 12 months | $126M | $55M |
| EBITDAEarnings before interest/tax | $165M | $31M |
| Net IncomeAfter-tax profit | $105M | -$20M |
| Free Cash FlowCash after capex | $23M | -$44M |
| Gross MarginGross profit ÷ Revenue | +90.2% | +46.3% |
| Operating MarginEBIT ÷ Revenue | +128.8% | +44.6% |
| Net MarginNet income ÷ Revenue | +83.3% | -36.3% |
| FCF MarginFCF ÷ Revenue | +18.2% | -80.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -11.1% | -10.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +92.0% | -2.0% |
NREF leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
Evenly matched — NREF and ACRE each lead in 3 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, ACRE's 18.5x EV/EBITDA is more attractive than NREF's 28.4x.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| Market CapShares × price | $295M | $280M |
| Enterprise ValueMkt cap + debt − cash | $4.7B | $1.3B |
| Trailing P/EPrice ÷ TTM EPS | 5.35x | -307.93x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.65x | 16.34x |
| PEG RatioP/E ÷ EPS growth rate | 0.48x | — |
| EV / EBITDAEnterprise value multiple | 28.35x | 18.49x |
| Price / SalesMarket cap ÷ Revenue | 2.34x | 3.28x |
| Price / BookPrice ÷ Book value/share | 0.69x | 0.54x |
| Price / FCFMarket cap ÷ FCF | 12.88x | 14.18x |
Evenly matched — NREF and ACRE each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
ACRE leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
NREF delivers a 14.4% return on equity — every $100 of shareholder capital generates $14 in annual profit, vs $-4 for ACRE. ACRE carries lower financial leverage with a 2.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to NREF's 5.35x.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| ROE (TTM)Return on equity | +14.4% | -3.9% |
| ROA (TTM)Return on assets | +2.0% | -1.3% |
| ROICReturn on invested capital | +2.3% | +2.9% |
| ROCEReturn on capital employed | +3.2% | +5.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 5.35x | 2.06x |
| Net DebtTotal debt minus cash | $4.4B | $1.0B |
| Cash & Equiv.Liquid assets | $34M | $29M |
| Total DebtShort + long-term debt | $4.5B | $1.0B |
| Interest CoverageEBIT ÷ Interest expense | 3.88x | 0.95x |
ACRE leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
NREF leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NREF five years ago would be worth $12,658 today (with dividends reinvested), compared to $7,045 for ACRE. Over the past 12 months, NREF leads with a +23.5% total return vs ACRE's +20.7%. The 3-year compound annual growth rate (CAGR) favors NREF at 18.3% vs ACRE's -1.5% — a key indicator of consistent wealth creation.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| YTD ReturnYear-to-date | +15.6% | +9.9% |
| 1-Year ReturnPast 12 months | +23.5% | +20.7% |
| 3-Year ReturnCumulative with dividends | +65.8% | -4.4% |
| 5-Year ReturnCumulative with dividends | +26.6% | -29.5% |
| 10-Year ReturnCumulative with dividends | +50.8% | +43.3% |
| CAGR (3Y)Annualised 3-year return | +18.3% | -1.5% |
NREF leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
NREF leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
NREF is the less volatile stock with a 0.79 beta — it tends to amplify market swings less than ACRE's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NREF currently trades 98.3% from its 52-week high vs ACRE's 85.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.79x | 0.99x |
| 52-Week HighHighest price in past year | $16.06 | $5.89 |
| 52-Week LowLowest price in past year | $12.36 | $4.05 |
| % of 52W HighCurrent price vs 52-week peak | +98.3% | +85.7% |
| RSI (14)Momentum oscillator 0–100 | 76.8 | 53.4 |
| Avg Volume (50D)Average daily shares traded | 53K | 396K |
NREF leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
ACRE leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates NREF as "Hold" and ACRE as "Buy". Consensus price targets imply -1.0% upside for ACRE (target: $5) vs -5.0% for NREF (target: $15). For income investors, ACRE offers the higher dividend yield at 14.07% vs NREF's 3.66%.
| Metric | NREFNexPoint Real Est… | ACREAres Commercial R… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $15.00 | $5.00 |
| # AnalystsCovering analysts | 6 | 13 |
| Dividend YieldAnnual dividend ÷ price | +3.7% | +14.1% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $0.58 | $0.71 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
ACRE leads this category, winning 1 of 1 comparable metric.
Key Takeaway
NREF leads in 3 of 6 categories (Income & Cash Flow, Total Returns). ACRE leads in 2 (Profitability & Efficiency, Analyst Outlook). 1 tied.
Best OverallNexPoint Real Estate Financ… (NREF)Leads 3 of 6 categories
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NREF vs ACRE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is NREF or ACRE a better buy right now?
For growth investors, NexPoint Real Estate Finance, Inc.
(NREF) is the stronger pick with 14. 3% revenue growth year-over-year, versus -2. 8% for Ares Commercial Real Estate Corporation (ACRE). NexPoint Real Estate Finance, Inc. (NREF) offers the better valuation at 5. 4x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate Ares Commercial Real Estate Corporation (ACRE) a "Buy" — based on 13 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.
02Which has the better valuation — NREF or ACRE?
On forward P/E, NexPoint Real Estate Finance, Inc.
is actually cheaper at 9. 6x.
03Which is the better long-term investment — NREF or ACRE?
Over the past 5 years, NexPoint Real Estate Finance, Inc.
(NREF) delivered a total return of +26. 6%, compared to -29. 5% for Ares Commercial Real Estate Corporation (ACRE). Over 10 years, the gap is even starker: NREF returned +50. 8% versus ACRE's +43. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NREF or ACRE?
By beta (market sensitivity over 5 years), NexPoint Real Estate Finance, Inc.
(NREF) is the lower-risk stock at 0. 79β versus Ares Commercial Real Estate Corporation's 0. 99β — meaning ACRE is approximately 26% more volatile than NREF 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 5% for NexPoint Real Estate Finance, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — NREF or ACRE?
By revenue growth (latest reported year), NexPoint Real Estate Finance, Inc.
(NREF) is pulling ahead at 14. 3% versus -2. 8% for Ares Commercial Real Estate Corporation (ACRE). On earnings-per-share growth, the picture is similar: NexPoint Real Estate Finance, Inc. grew EPS 189. 2% year-over-year, compared to 97. 4% for Ares Commercial Real Estate Corporation. Over a 3-year CAGR, NREF leads at 46. 2% 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.
06Which has better profit margins — NREF or ACRE?
NexPoint Real Estate Finance, Inc.
(NREF) is the more profitable company, earning 83. 3% net margin versus -1. 1% for Ares Commercial Real Estate Corporation — meaning it keeps 83. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NREF leads at 129. 7% versus 72. 4% for ACRE. At the gross margin level — before operating expenses — NREF leads at 88. 9%, 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.
07Is NREF or ACRE more undervalued right now?
On forward earnings alone, NexPoint Real Estate Finance, Inc.
(NREF) trades at 9. 6x forward P/E versus 16. 3x for Ares Commercial Real Estate Corporation — 6. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACRE: -1. 0% to $5. 00.
08Which pays a better dividend — NREF or ACRE?
All stocks in this comparison pay dividends.
Ares Commercial Real Estate Corporation (ACRE) offers the highest yield at 14. 1%, versus 3. 7% for NexPoint Real Estate Finance, Inc. (NREF).
09Is NREF or ACRE better for a retirement portfolio?
For long-horizon retirement investors, NexPoint Real Estate Finance, Inc.
(NREF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 79), 3. 7% yield). Both have compounded well over 10 years (NREF: +50. 8%, ACRE: +43. 3%), 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.
10What are the main differences between NREF and ACRE?
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: NREF 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.
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