AFC Gamma (NASDAQ:AFCG) & Corporación Inmobiliaria Vesta (NYSE:VTMX) Financial Analysis

Corporación Inmobiliaria Vesta (NYSE:VTMX) and AFC Gamma (NASDAQ:AFCG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Corporación Inmobiliaria Vesta has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Dividends

Corporación Inmobiliaria Vesta pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. AFC Gamma pays an annual dividend of $1.32 per share and has a dividend yield of 15.8%. Corporación Inmobiliaria Vesta pays out 6.8% of its earnings in the form of a dividend. AFC Gamma pays out 330.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Corporación Inmobiliaria Vesta and AFC Gamma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporación Inmobiliaria Vesta	$239.20 million	85.01	$316.64 million	$2.34	10.06
AFC Gamma	$36.79 million	5.00	$20.95 million	$0.40	20.95

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

Institutional and Insider Ownership

6.6% of Corporación Inmobiliaria Vesta shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 26.2% of AFC Gamma shares are held 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Corporación Inmobiliaria Vesta and AFC Gamma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corporación Inmobiliaria Vesta	0	1	1	0	2.50
AFC Gamma	0	2	2	1	2.80

Corporación Inmobiliaria Vesta presently has a consensus price target of $33.00, suggesting a potential upside of 40.20%. AFC Gamma has a consensus price target of $11.67, suggesting a potential upside of 39.22%. Given Corporación Inmobiliaria Vesta’s higher possible upside, analysts clearly believe Corporación Inmobiliaria Vesta is more favorable than AFC Gamma.

Profitability

This table compares Corporación Inmobiliaria Vesta and AFC Gamma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corporación Inmobiliaria Vesta	88.52%	8.52%	5.67%
AFC Gamma	13.69%	12.93%	8.42%

Summary

AFC Gamma beats Corporación Inmobiliaria Vesta on 9 of the 17 factors compared between the two stocks.

About Corporación Inmobiliaria Vesta

Corporación Inmobiliaria Vesta, S.A.B. de C.V., together with its subsidiaries, acquires, develops, manages, operates, and leases industrial buildings and distribution facilities in Mexico. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.

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.