Critical Contrast: Chicago Atlantic Real Estate Finance (NASDAQ:REFI) & Manhattan Bridge Capital (NASDAQ:LOAN)

Manhattan Bridge Capital (NASDAQ:LOAN – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Manhattan Bridge Capital and Chicago Atlantic Real Estate Finance, as provided by MarketBeat.

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Chicago Atlantic Real Estate Finance 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, analysts clearly believe Chicago Atlantic Real Estate Finance is more favorable than Manhattan Bridge Capital.

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 10.8%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 17.6%. Manhattan Bridge Capital pays out 104.8% 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 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. Manhattan Bridge Capital has raised its dividend for 1 consecutive years and Chicago Atlantic Real Estate Finance has raised its dividend for 1 consecutive years.

Profitability

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

Valuation & Earnings

This table compares Manhattan Bridge Capital and Chicago Atlantic Real Estate Finance”s gross revenue, earnings per share and valuation.

Chicago Atlantic Real Estate Finance has higher revenue and earnings than Manhattan Bridge Capital. Chicago Atlantic Real Estate Finance is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. 24.6% of Manhattan Bridge Capital shares are held by company insiders. Comparatively, 6.5% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Manhattan Bridge Capital has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Summary

Chicago Atlantic Real Estate Finance beats Manhattan Bridge Capital on 11 of the 16 factors compared between the two stocks.

About Manhattan Bridge Capital

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Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.

About Chicago Atlantic Real Estate Finance

(Get Free Report)

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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