Comparing AFC Gamma (AFCG) & Its Rivals

AFC Gamma (NASDAQ:AFCG) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its peers? We will compare AFC Gamma to similar companies based on the strength of its institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

AFC Gamma has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, AFC Gamma’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 30.7% of AFC Gamma shares are owned by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AFC Gamma and its peers’ 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%
AFC Gamma Competitors	318.50%	79.22%	3.72%

Dividends

AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.3%. 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. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares AFC Gamma and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AFC Gamma	$31.32 million	-$20.67 million	16.68
AFC Gamma Competitors	$2.39 billion	$398.52 million	17.86

AFC Gamma’s peers have higher revenue and earnings than AFC Gamma. AFC Gamma is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AFC Gamma and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	1	0	0	1.50
AFC Gamma Competitors	5560	20137	22477	642	2.37

As a group, “Capital Markets” companies have a potential upside of 26.42%. Given AFC Gamma’s peers stronger consensus rating and higher possible upside, analysts clearly believe AFC Gamma has less favorable growth aspects than its peers.

Summary

AFC Gamma peers beat AFC Gamma on 12 of the 15 factors compared.

AFC Gamma Company Profile

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.