Reviewing Chicago Atlantic Real Estate Finance (NASDAQ:REFI) & Annaly Capital Management (NYSE:NLY)

Chicago Atlantic Real Estate Finance (NASDAQ:REFIGet Rating) and Annaly Capital Management (NYSE:NLYGet Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

13.7% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 46.0% of Annaly Capital Management shares are owned by institutional investors. 9.0% of Chicago Atlantic Real Estate Finance shares are owned by insiders. Comparatively, 0.3% of Annaly Capital Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Chicago Atlantic Real Estate Finance and Annaly Capital Management, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chicago Atlantic Real Estate Finance 0 0 5 0 3.00
Annaly Capital Management 0 4 2 0 2.33

Chicago Atlantic Real Estate Finance presently has a consensus price target of $21.80, suggesting a potential upside of 46.90%. Annaly Capital Management has a consensus price target of $6.67, suggesting a potential upside of 13.57%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher probable upside, analysts clearly believe Chicago Atlantic Real Estate Finance is more favorable than Annaly Capital Management.

Valuation & Earnings

This table compares Chicago Atlantic Real Estate Finance and Annaly Capital Management’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chicago Atlantic Real Estate Finance $11.07 million 23.67 $9.50 million N/A N/A
Annaly Capital Management $1.98 billion 4.81 $2.39 billion $2.52 2.33

Annaly Capital Management has higher revenue and earnings than Chicago Atlantic Real Estate Finance.

Profitability

This table compares Chicago Atlantic Real Estate Finance and Annaly Capital Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chicago Atlantic Real Estate Finance N/A N/A N/A
Annaly Capital Management 178.91% 16.72% 2.39%

Dividends

Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 12.7%. Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 15.0%. Annaly Capital Management pays out 34.9% of its earnings in the form of a dividend.

Summary

Annaly Capital Management beats Chicago Atlantic Real Estate Finance on 7 of the 13 factors compared between the two stocks.

About Chicago Atlantic Real Estate Finance

(Get Rating)

Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It 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. The company was incorporated in 2021 and is based in Chicago, Illinois.

About Annaly Capital Management

(Get Rating)

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance and corporate middle market lending. The company invests in agency mortgage-backed securities, mortgage servicing rights, Agency commercial mortgage-backed securities, non-Agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts, and other commercial real estate investments. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was founded in 1996 and is based in New York, New York.

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