Braemar Hotels & Resorts (NYSE:BHR – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Dividends
Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 10.1%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 12.6%. Braemar Hotels & Resorts pays out -23.3% of its earnings in the form of a dividend. Chicago Atlantic Real Estate Finance pays out 100.0% 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 raised 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.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Braemar Hotels & Resorts and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braemar Hotels & Resorts | 0 | 0 | 0 | 0 | 0.00 |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 0 | 3.00 |
Institutional and Insider Ownership
64.8% of Braemar Hotels & Resorts shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 1.8% of Braemar Hotels & Resorts shares are owned by company insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Braemar Hotels & Resorts and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braemar Hotels & Resorts | -0.30% | -0.78% | -0.10% |
| Chicago Atlantic Real Estate Finance | 64.57% | 13.17% | 10.10% |
Risk and Volatility
Braemar Hotels & Resorts has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Earnings and Valuation
This table compares Braemar Hotels & Resorts and Chicago Atlantic Real Estate Finance”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braemar Hotels & Resorts | $728.40 million | 0.18 | -$27.02 million | ($0.86) | -2.31 |
| Chicago Atlantic Real Estate Finance | $54.59 million | 5.75 | $38.71 million | $1.88 | 7.96 |
Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than Braemar Hotels & Resorts. Braemar Hotels & Resorts is trading at a lower price-to-earnings ratio than Chicago Atlantic Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Summary
Chicago Atlantic Real Estate Finance beats Braemar Hotels & Resorts on 13 of the 17 factors compared between the two stocks.
About Braemar Hotels & Resorts
Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).
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.
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