Critical Analysis: AFC Gamma (NASDAQ:AFCG) vs. Corporación Inmobiliaria Vesta (NYSE:VTMX)

AFC Gamma (NASDAQ:AFCG) and Corporación Inmobiliaria Vesta (NYSE:VTMX) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares AFC Gamma and Corporación Inmobiliaria Vesta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	13.69%	12.93%	8.42%
Corporación Inmobiliaria Vesta	88.52%	8.52%	5.67%

Earnings & Valuation

This table compares AFC Gamma and Corporación Inmobiliaria Vesta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$35.76 million	3.98	$20.95 million	$0.80	8.10
Corporación Inmobiliaria Vesta	$239.20 million	83.36	$316.64 million	$2.34	9.86

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

Risk & Volatility

AFC Gamma has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Corporación Inmobiliaria Vesta has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Dividends

AFC Gamma pays an annual dividend of $0.92 per share and has a dividend yield of 14.2%. Corporación Inmobiliaria Vesta pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. AFC Gamma pays out 115.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corporación Inmobiliaria Vesta pays out 6.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for AFC Gamma and Corporación Inmobiliaria Vesta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	0	3	1	1	2.60
Corporación Inmobiliaria Vesta	0	1	1	0	2.50

AFC Gamma presently has a consensus price target of $9.67, indicating a potential upside of 49.18%. Corporación Inmobiliaria Vesta has a consensus price target of $33.00, indicating a potential upside of 42.97%. Given AFC Gamma’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AFC Gamma is more favorable than Corporación Inmobiliaria Vesta.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. Comparatively, 6.6% of Corporación Inmobiliaria Vesta shares are held by institutional investors. 26.2% of AFC Gamma 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.

Summary

AFC Gamma beats Corporación Inmobiliaria Vesta on 9 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 Corporación Inmobiliaria Vesta

Corporación Inmobiliaria Vesta, S.A.B. de C.V., together with its subsidiaries, acquires, develops, manages, operates, and leases industrial buildings and distribution facilities in Mexico. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.