Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Volatility and Risk
Chicago Atlantic Real Estate Finance has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Earnings & Valuation
This table compares Chicago Atlantic Real Estate Finance and Kilroy Realty”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $55.79 million | 5.62 | $38.71 million | $2.00 | 7.99 |
| Kilroy Realty | $1.12 billion | 4.28 | $212.24 million | $1.67 | 24.25 |
Analyst Ratings
This is a summary of recent ratings and price targets for Chicago Atlantic Real Estate Finance and Kilroy Realty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 1 | 3.33 |
| Kilroy Realty | 1 | 4 | 3 | 0 | 2.25 |
Chicago Atlantic Real Estate Finance currently has a consensus target price of $20.00, indicating a potential upside of 25.16%. Kilroy Realty has a consensus target price of $40.63, indicating a potential upside of 0.31%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than Kilroy Realty.
Dividends
Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 11.8%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.3%. Chicago Atlantic Real Estate Finance pays out 94.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chicago Atlantic Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 12.3% of Chicago Atlantic Real Estate Finance shares are held by insiders. Comparatively, 2.5% of Kilroy Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Chicago Atlantic Real Estate Finance and Kilroy Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chicago Atlantic Real Estate Finance | 64.57% | 13.17% | 10.10% |
| Kilroy Realty | 17.78% | 3.53% | 1.73% |
Summary
Chicago Atlantic Real Estate Finance beats Kilroy Realty on 11 of the 17 factors compared between the two stocks.
About Chicago Atlantic Real Estate Finance
Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. The company engages in originating, structuring, and investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its portfolio primarily includes offers senior loans to state-licensed operators in the cannabis industry. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Chicago Atlantic Real Estate Finance, Inc. was incorporated in 2021 and is headquartered in Chicago, Illinois.
About Kilroy Realty
Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.
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