Howard Hughes (NYSE:HHH – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Earnings and Valuation
This table compares Howard Hughes and Chicago Atlantic Real Estate Finance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Howard Hughes | $1.02 billion | 4.13 | -$550.95 million | $1.51 | 55.93 |
| Chicago Atlantic Real Estate Finance | $57.15 million | 5.43 | $38.71 million | $1.98 | 7.99 |
Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than Howard Hughes. Chicago Atlantic Real Estate Finance is trading at a lower price-to-earnings ratio than Howard Hughes, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Howard Hughes | 0 | 0 | 2 | 0 | 3.00 |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 1 | 1 | 3.50 |
Howard Hughes presently has a consensus price target of $82.00, suggesting a potential downside of 2.90%. Chicago Atlantic Real Estate Finance has a consensus price target of $20.00, suggesting a potential upside of 26.42%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher probable upside, analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than Howard Hughes.
Profitability
This table compares Howard Hughes and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Howard Hughes | 6.57% | 3.28% | 1.03% |
| Chicago Atlantic Real Estate Finance | 63.27% | 13.29% | 10.10% |
Volatility & Risk
Howard Hughes has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Insider and Institutional Ownership
93.8% of Howard Hughes shares are held by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. 33.0% of Howard Hughes shares are held by company insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Chicago Atlantic Real Estate Finance beats Howard Hughes on 9 of the 15 factors compared between the two stocks.
About Howard Hughes
Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.
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.
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