Head-To-Head Comparison: Chicago Atlantic Real Estate Finance (NASDAQ:REFI) and Ladder Capital (NYSE:LADR)

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) and Ladder Capital (NYSE:LADR) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. Comparatively, 62.3% of Ladder Capital shares are held by institutional investors. 6.5% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Comparatively, 12.6% of Ladder Capital shares are held 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Chicago Atlantic Real Estate Finance and Ladder Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chicago Atlantic Real Estate Finance	1	2	2	0	2.20
Ladder Capital	1	2	4	0	2.43

Chicago Atlantic Real Estate Finance presently has a consensus target price of $15.33, suggesting a potential upside of 67.21%. Ladder Capital has a consensus target price of $12.29, suggesting a potential upside of 37.35%. Given Chicago Atlantic Real Estate Finance’s higher probable upside, equities research analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than Ladder Capital.

Dividends

Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 20.5%. Ladder Capital pays an annual dividend of $0.92 per share and has a dividend yield of 10.3%. 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. Ladder Capital pays out 115.0% 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 increased 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.

Profitability

This table compares Chicago Atlantic Real Estate Finance and Ladder Capital’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%
Ladder Capital	23.70%	6.99%	1.86%

Volatility & Risk

Chicago Atlantic Real Estate Finance has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Ladder Capital has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Chicago Atlantic Real Estate Finance and Ladder Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chicago Atlantic Real Estate Finance	$53.45 million	4.40	$36.01 million	$1.37	6.69
Ladder Capital	$390.29 million	2.91	$64.18 million	$0.80	11.18

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

Summary

Ladder Capital beats Chicago Atlantic Real Estate Finance on 9 of the 17 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 Ladder Capital

Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. It operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities, U.S. treasury and agency, corporate bonds, and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. 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 founded in 2008 and is headquartered in New York, New York.