Contrasting ACRES Commercial Realty (NYSE:ACR) & Presidio Property Trust (NASDAQ:SQFT)

Presidio Property Trust (NASDAQ:SQFT) and ACRES Commercial Realty (NYSE:ACR) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk and Volatility

Presidio Property Trust has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Insider & Institutional Ownership

38.9% of Presidio Property Trust shares are owned by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are owned by institutional investors. 18.7% of Presidio Property Trust shares are owned by company insiders. Comparatively, 4.1% of ACRES Commercial Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Presidio Property Trust and ACRES Commercial Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presidio Property Trust	0	0	0	0	0.00
ACRES Commercial Realty	0	0	1	0	3.00

ACRES Commercial Realty has a consensus price target of $17.50, indicating a potential upside of 0.98%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, analysts clearly believe ACRES Commercial Realty is more favorable than Presidio Property Trust.

Earnings & Valuation

This table compares Presidio Property Trust and ACRES Commercial Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presidio Property Trust	$17.64 million	0.51	$10.15 million	($2.81)	-0.22
ACRES Commercial Realty	$91.13 million	1.47	$22.39 million	$0.84	20.63

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

Profitability

This table compares Presidio Property Trust and ACRES Commercial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presidio Property Trust	-176.04%	-29.85%	-9.37%
ACRES Commercial Realty	25.71%	5.43%	1.15%

Summary

ACRES Commercial Realty beats Presidio Property Trust on 12 of the 13 factors compared between the two stocks.

About Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.

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.