Comparing AFC Gamma (NASDAQ:AFCG) & Gadsden Properties (OTCMKTS:GADS)

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

Earnings and Valuation

This table compares AFC Gamma and Gadsden Properties’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$64.18 million	4.03	$20.95 million	$1.02	12.26
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

AFC Gamma has higher revenue and earnings than Gadsden Properties.

Risk & Volatility

AFC Gamma has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -4.55, suggesting that its share price is 555% less volatile than the S&P 500.

Profitability

This table compares AFC Gamma and Gadsden Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	30.38%	12.10%	8.92%
Gadsden Properties	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for AFC Gamma and Gadsden Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	0	1	0	0	2.00
Gadsden Properties	0	0	0	0	N/A

AFC Gamma presently has a consensus target price of $17.50, suggesting a potential upside of 39.89%. Given AFC Gamma’s higher possible upside, analysts clearly believe AFC Gamma is more favorable than Gadsden Properties.

Insider & Institutional Ownership

34.3% of AFC Gamma shares are owned by institutional investors. 28.5% of AFC Gamma shares are owned by insiders. Comparatively, 5.0% of Gadsden Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

AFC Gamma beats Gadsden Properties on 8 of the 8 factors compared between the two stocks.

About AFC Gamma

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other types of loans and debt securities for established companies operating in the cannabis industry in states that have legalized medical and/or adult use cannabis. 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. AFC Gamma, Inc. 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 Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.