Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and Apollo Commercial Real Estate Finance (NYSE:ARI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Profitability
This table compares Chicago Atlantic Real Estate Finance and Apollo Commercial Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chicago Atlantic Real Estate Finance | 54.57% | 11.53% | 8.06% |
| Apollo Commercial Real Estate Finance | 55.49% | 7.39% | 1.58% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Chicago Atlantic Real Estate Finance and Apollo Commercial Real Estate Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic Real Estate Finance | 0 | 3 | 2 | 0 | 2.40 |
| Apollo Commercial Real Estate Finance | 0 | 4 | 2 | 0 | 2.33 |
Volatility and Risk
Chicago Atlantic Real Estate Finance has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Dividends
Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 17.7%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 16.0%. Chicago Atlantic Real Estate Finance pays out 137.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Commercial Real Estate Finance pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chicago Atlantic Real Estate Finance has increased its dividend for 1 consecutive years. Chicago Atlantic Real Estate Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. 6.5% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Comparatively, 0.5% of Apollo Commercial Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Chicago Atlantic Real Estate Finance and Apollo Commercial Real Estate Finance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $55.39 million | 4.93 | $36.01 million | $1.37 | 7.77 |
| Apollo Commercial Real Estate Finance | $271.59 million | 2.96 | $126.72 million | $0.80 | 7.81 |
Apollo Commercial Real Estate Finance has higher revenue and earnings than Chicago Atlantic Real Estate Finance. Chicago Atlantic Real Estate Finance is trading at a lower price-to-earnings ratio than Apollo Commercial Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
About Chicago Atlantic Real Estate Finance
Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. The company engages in originating, structuring, and investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its portfolio primarily includes offers senior loans to state-licensed operators in the cannabis industry. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Chicago Atlantic Real Estate Finance, Inc. was incorporated in 2021 and is headquartered in Chicago, Illinois.
About Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
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