AFC Gamma (AFCG) and The Competition Financial Review

AFC Gamma (NASDAQ:AFCG) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare AFC Gamma to related companies based on the strength of its analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Dividends

AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 5.7%. AFC Gamma pays out 19.2% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. AFC Gamma is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AFC Gamma and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	1	0	0	1.50
AFC Gamma Competitors	5605	20208	22560	650	2.37

As a group, “Capital Markets” companies have a potential upside of 22.91%. Given AFC Gamma’s competitors stronger consensus rating and higher possible upside, analysts plainly believe AFC Gamma has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 30.7% of AFC Gamma shares are owned by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares AFC Gamma and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AFC Gamma	$36.91 million	-$20.67 million	3.37
AFC Gamma Competitors	$2.87 billion	$397.40 million	15.81

AFC Gamma’s competitors have higher revenue and earnings than AFC Gamma. AFC Gamma is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

AFC Gamma has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, AFC Gamma’s competitors have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Profitability

This table compares AFC Gamma and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	71.50%	4.57%	2.31%
AFC Gamma Competitors	314.79%	9.90%	3.46%

Summary

AFC Gamma competitors beat AFC Gamma on 11 of the 15 factors compared.

AFC Gamma Company Profile

AFC Gamma, Inc. is a specialty finance company focused primarily on providing institutional debt financing to businesses operating in the regulated cannabis industry. The company has historically targeted established cannabis operators and other participants in the industry that may have limited access to traditional bank financing. Its financing activities have included senior secured loans, mortgage-backed loans and other structured debt arrangements. Borrowers may use these funds to support the acquisition, development or expansion of cannabis cultivation, processing, manufacturing and retail facilities, as well as related working-capital and corporate needs.