AFC Gamma (NASDAQ:AFCG – Get Free Report) and Virtu Financial (NYSE:VIRT – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Earnings and Valuation
This table compares AFC Gamma and Virtu Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AFC Gamma | $31.32 million | 2.14 | -$20.67 million | $0.19 | 15.58 |
| Virtu Financial | $3.63 billion | 2.37 | $468.36 million | $6.02 | 9.22 |
Dividends
AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.8%. Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 1.7%. 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. Virtu Financial pays out 15.9% of its earnings in the form of a dividend.
Analyst Recommendations
This is a summary of recent ratings for AFC Gamma and Virtu Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AFC Gamma | 1 | 1 | 0 | 0 | 1.50 |
| Virtu Financial | 1 | 2 | 5 | 0 | 2.50 |
Virtu Financial has a consensus target price of $63.60, suggesting a potential upside of 14.62%. Given Virtu Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Virtu Financial is more favorable than AFC Gamma.
Volatility and Risk
AFC Gamma has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Virtu Financial has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Profitability
This table compares AFC Gamma and Virtu Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AFC Gamma | 15.64% | 2.85% | 1.50% |
| Virtu Financial | 13.50% | 49.06% | 4.28% |
Insider & Institutional Ownership
26.5% of AFC Gamma shares are owned by institutional investors. Comparatively, 45.8% of Virtu Financial shares are owned by institutional investors. 30.7% of AFC Gamma shares are owned by company insiders. Comparatively, 46.8% of Virtu Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Virtu Financial beats AFC Gamma on 12 of the 16 factors compared between the two stocks.
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.
About Virtu Financial
Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company’s solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.
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