Reviewing AFC Gamma (NASDAQ:AFCG) and CaliberCos (NASDAQ:CWD)

AFC Gamma (NASDAQ:AFCG) and CaliberCos (NASDAQ:CWD) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Earnings & Valuation

This table compares AFC Gamma and CaliberCos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$64.18 million	3.30	$20.95 million	$0.40	24.13
CaliberCos	$90.94 million	0.12	-$12.70 million	($0.50)	-0.97

AFC Gamma has higher earnings, but lower revenue than CaliberCos. CaliberCos is trading at a lower price-to-earnings ratio than AFC Gamma, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AFC Gamma and CaliberCos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	0	2	1	1	2.75
CaliberCos	0	0	0	0	0.00

AFC Gamma presently has a consensus price target of $11.00, suggesting a potential upside of 13.99%. Given AFC Gamma’s stronger consensus rating and higher possible upside, research analysts plainly believe AFC Gamma is more favorable than CaliberCos.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. Comparatively, 4.1% of CaliberCos shares are held by institutional investors. 26.2% of AFC Gamma shares are held by insiders. Comparatively, 42.3% of CaliberCos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

AFC Gamma has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, CaliberCos has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	13.69%	12.93%	8.42%
CaliberCos	-16.19%	-13.02%	-4.63%

Summary

AFC Gamma beats CaliberCos on 13 of the 15 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 CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.