Independence Realty Trust (NYSE:IRT – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Dividends
Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 12.1%. Independence Realty Trust pays out 355.6% 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 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. Chicago Atlantic Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Independence Realty Trust and Chicago Atlantic Real Estate Finance”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independence Realty Trust | $640.03 million | 7.37 | $39.29 million | $0.18 | 113.56 |
| Chicago Atlantic Real Estate Finance | $57.15 million | 5.34 | $38.71 million | $2.00 | 7.78 |
Profitability
This table compares Independence Realty Trust and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independence Realty Trust | 6.15% | 1.11% | 0.66% |
| Chicago Atlantic Real Estate Finance | 64.57% | 13.17% | 10.10% |
Institutional & Insider Ownership
88.3% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Independence Realty Trust has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Independence Realty Trust and Chicago Atlantic Real Estate Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independence Realty Trust | 0 | 2 | 4 | 0 | 2.67 |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 1 | 3.33 |
Independence Realty Trust currently has a consensus target price of $21.33, suggesting a potential upside of 4.37%. Chicago Atlantic Real Estate Finance has a consensus target price of $20.00, suggesting a potential upside of 28.62%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher probable upside, analysts clearly believe Chicago Atlantic Real Estate Finance is more favorable than Independence Realty Trust.
Summary
Chicago Atlantic Real Estate Finance beats Independence Realty Trust on 10 of the 17 factors compared between the two stocks.
About Independence Realty Trust
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.
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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