Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) and AFC Gamma (NASDAQ:AFCG – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Profitability
This table compares Bimini Capital Management and AFC Gamma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bimini Capital Management | -4.70% | -8.69% | -0.44% |
| AFC Gamma | -25.35% | 10.06% | 5.78% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Bimini Capital Management and AFC Gamma, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bimini Capital Management | 0 | 0 | 0 | 0 | 0.00 |
| AFC Gamma | 1 | 3 | 0 | 0 | 1.75 |
Dividends
Bimini Capital Management pays an annual dividend of $0.13 per share and has a dividend yield of 7.6%. AFC Gamma pays an annual dividend of $0.60 per share and has a dividend yield of 18.5%. Bimini Capital Management pays out 144.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AFC Gamma pays out -146.3% of its earnings in the form of a dividend. AFC Gamma is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Bimini Capital Management and AFC Gamma”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bimini Capital Management | $11.90 million | 1.44 | -$1.31 million | $0.09 | 18.89 |
| AFC Gamma | $22.85 million | 3.20 | $16.78 million | ($0.41) | -7.90 |
AFC Gamma has higher revenue and earnings than Bimini Capital Management. AFC Gamma is trading at a lower price-to-earnings ratio than Bimini Capital Management, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
26.5% of AFC Gamma shares are owned by institutional investors. 45.4% of Bimini Capital Management shares are owned by company insiders. Comparatively, 25.1% of AFC Gamma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Bimini Capital Management has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Summary
AFC Gamma beats Bimini Capital Management on 12 of the 15 factors compared between the two stocks.
About Bimini Capital Management
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.
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.
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