Acadian Asset Management (NYSE:AAMI) vs. AFC Gamma (NASDAQ:AFCG) Head to Head Survey

AFC Gamma (NASDAQ:AFCG) and Acadian Asset Management (NYSE:AAMI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Dividends

AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 5.7%. Acadian Asset Management pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. AFC Gamma pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadian Asset Management pays out 14.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares AFC Gamma and Acadian Asset Management”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$31.32 million	2.53	-$20.67 million	$0.19	18.42
Acadian Asset Management	$563.70 million	5.93	$80.00 million	$2.83	33.28

Acadian Asset Management has higher revenue and earnings than AFC Gamma. AFC Gamma is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AFC Gamma and Acadian Asset Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	1	0	0	1.50
Acadian Asset Management	0	4	1	0	2.20

Acadian Asset Management has a consensus target price of $86.33, indicating a potential downside of 8.32%. Given Acadian Asset Management’s stronger consensus rating and higher possible upside, analysts plainly believe Acadian Asset Management is more favorable than AFC Gamma.

Institutional & Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. Comparatively, 98.7% of Acadian Asset Management shares are held by institutional investors. 30.7% of AFC Gamma shares are held by company insiders. Comparatively, 22.6% of Acadian Asset Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares AFC Gamma and Acadian Asset Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	15.64%	2.85%	1.50%
Acadian Asset Management	15.17%	189.32%	21.26%

Volatility and Risk

AFC Gamma has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Acadian Asset Management has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

Acadian Asset Management beats AFC Gamma on 13 of the 16 factors compared between the two stocks.

About AFC Gamma

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The company has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. AFC Gamma, Inc. was incorporated in 2020 and is based in West Palm Beach, Florida.

About Acadian Asset Management

Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.