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

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

Analyst Recommendations

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

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

ACRES Commercial Realty currently 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 probable upside, research analysts clearly believe ACRES Commercial Realty is more favorable than Presidio Property Trust.

Profitability

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

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

Insider & Institutional Ownership

40.0% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 38.9% of Presidio Property Trust shares are held by institutional investors. 4.1% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 18.7% of Presidio Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

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

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.

Risk and Volatility

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

Summary

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

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.

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.