Acadian Asset Management (NYSE:AAMI – Get Free Report) and AFC Gamma (NASDAQ:AFCG – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Institutional & Insider Ownership
98.7% of Acadian Asset Management shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 22.6% of Acadian Asset Management shares are held by insiders. Comparatively, 30.7% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Acadian Asset Management and AFC Gamma”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acadian Asset Management | $668.50 million | 4.96 | $80.00 million | $2.83 | 33.03 |
| AFC Gamma | $31.32 million | 2.37 | -$20.67 million | $0.19 | 17.26 |
Acadian Asset Management has higher revenue and earnings than AFC Gamma. AFC Gamma is trading at a lower price-to-earnings ratio than Acadian Asset Management, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Acadian Asset Management has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Profitability
This table compares Acadian Asset Management and AFC Gamma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadian Asset Management | 15.17% | 189.32% | 21.26% |
| AFC Gamma | 15.64% | 2.85% | 1.50% |
Analyst Recommendations
This is a summary of recent ratings for Acadian Asset Management and AFC Gamma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadian Asset Management | 0 | 4 | 1 | 0 | 2.20 |
| AFC Gamma | 1 | 1 | 0 | 0 | 1.50 |
Acadian Asset Management presently has a consensus target price of $86.33, suggesting a potential downside of 7.64%. Given Acadian Asset Management’s stronger consensus rating and higher possible upside, analysts clearly believe Acadian Asset Management is more favorable than AFC Gamma.
Dividends
Acadian Asset Management pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.1%. Acadian Asset Management pays out 14.1% of its earnings in the form of a dividend. 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.
Summary
Acadian Asset Management beats AFC Gamma on 13 of the 16 factors compared between the two stocks.
About Acadian Asset Management
Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.
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.
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