Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and AGNC Investment (NASDAQ:AGNCM – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of current recommendations for Chicago Atlantic Real Estate Finance and AGNC Investment, 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 |
| AGNC Investment | 0 | 0 | 0 | 0 | 0.00 |
Chicago Atlantic Real Estate Finance currently has a consensus price target of $15.33, suggesting a potential upside of 43.57%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher possible upside, research analysts clearly believe Chicago Atlantic Real Estate Finance is more favorable than AGNC Investment.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $55.39 million | 4.94 | $36.01 million | $1.37 | 7.80 |
| AGNC Investment | $2.40 billion | N/A | N/A | N/A | N/A |
Chicago Atlantic Real Estate Finance has higher earnings, but lower revenue than AGNC Investment.
Dividends
Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 17.6%. AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 6.8%. 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. 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.
Insider & Institutional Ownership
25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. 6.5% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Chicago Atlantic Real Estate Finance and AGNC Investment’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% |
| AGNC Investment | N/A | N/A | N/A |
Summary
Chicago Atlantic Real Estate Finance beats AGNC Investment on 10 of the 12 factors compared between 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 AGNC Investment
AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company qualifies as a real estate investment trust for federal income tax purposes. It generally 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 formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
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