Head-To-Head Contrast: AFC Gamma (NASDAQ:AFCG) versus CV (OTCMKTS:CVHL)

AFC Gamma (NASDAQ:AFCG) and CV (OTCMKTS:CVHL) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

26.5% of AFC Gamma shares are held by institutional investors. 30.7% of AFC Gamma shares are held by insiders. Comparatively, 7.6% of CV shares are held by 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 AFC Gamma and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	-43.21%	1.48%	0.85%
CV	N/A	N/A	N/A

Valuation & Earnings

This table compares AFC Gamma and CV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$31.32 million	2.72	-$20.67 million	($0.64)	-5.66
CV	$26.73 million	0.04	-$16.24 million	N/A	N/A

CV has lower revenue, but higher earnings than AFC Gamma.

Volatility and Risk

AFC Gamma has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, CV has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for AFC Gamma and CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	2	0	0	1.67
CV	0	0	0	0	0.00

AFC Gamma currently has a consensus price target of $4.50, suggesting a potential upside of 24.31%. Given AFC Gamma’s stronger consensus rating and higher possible upside, research analysts plainly believe AFC Gamma is more favorable than CV.

Summary

AFC Gamma beats CV on 8 of the 11 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 CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.