TRTX vs ACRE

For growth investors, TPG RE Finance Trust, Inc.

(TRTX) is the stronger pick with 123. 3% revenue growth year-over-year, versus -2. 8% for Ares Commercial Real Estate Corporation (ACRE). TPG RE Finance Trust, Inc. (TRTX) offers the better valuation at 14. 9x trailing P/E (8. 1x forward), making it the more compelling value choice. Analysts rate TPG RE Finance Trust, Inc. (TRTX) a "Buy" — based on 11 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, TPG RE Finance Trust, Inc.

is actually cheaper at 8. 1x.

Over the past 5 years, TPG RE Finance Trust, Inc.

(TRTX) delivered a total return of +1. 4%, compared to -29. 5% for Ares Commercial Real Estate Corporation (ACRE). Over 10 years, the gap is even starker: ACRE returned +43. 3% versus TRTX's -1. 9%. 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), TPG RE Finance Trust, Inc.

(TRTX) is the lower-risk stock at 0. 78β versus Ares Commercial Real Estate Corporation's 0. 99β — meaning ACRE is approximately 27% more volatile than TRTX 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 TPG RE Finance Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TPG RE Finance Trust, Inc.

(TRTX) is pulling ahead at 123. 3% versus -2. 8% for Ares Commercial Real Estate Corporation (ACRE). On earnings-per-share growth, the picture is similar: Ares Commercial Real Estate Corporation grew EPS 97. 4% year-over-year, compared to -26. 0% for TPG RE Finance Trust, Inc.. Over a 3-year CAGR, TRTX leads at 2. 8% 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.

TPG RE Finance Trust, Inc.

(TRTX) is the more profitable company, earning 18. 1% net margin versus -1. 1% for Ares Commercial Real Estate Corporation — meaning it keeps 18. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TRTX leads at 73. 0% versus 72. 4% for ACRE. At the gross margin level — before operating expenses — TRTX leads at 79. 3%, 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, TPG RE Finance Trust, Inc.

(TRTX) trades at 8. 1x forward P/E versus 16. 3x for Ares Commercial Real Estate Corporation — 8. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TRTX: 17. 8% to $10. 00.

All stocks in this comparison pay dividends.

Ares Commercial Real Estate Corporation (ACRE) offers the highest yield at 14. 1%, versus 13. 5% for TPG RE Finance Trust, Inc. (TRTX).

For long-horizon retirement investors, TPG RE Finance Trust, Inc.

(TRTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 78), 13. 5% yield). Both have compounded well over 10 years (TRTX: -1. 9%, 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.

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: TRTX is a small-cap high-growth 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.