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

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

Volatility and Risk

Corporación Inmobiliaria Vesta has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

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%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporación Inmobiliaria Vesta	$239.20 million	85.70	$316.64 million	$2.34	10.14
AFC Gamma	$36.79 million	4.99	$20.95 million	$0.40	20.93

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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices 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 target price of $33.50, suggesting a potential upside of 41.18%. AFC Gamma has a consensus target price of $11.67, suggesting a potential upside of 39.39%. Given Corporación Inmobiliaria Vesta’s higher probable upside, research analysts clearly believe Corporación Inmobiliaria Vesta is more favorable than AFC Gamma.

Insider and Institutional Ownership

6.6% of Corporación Inmobiliaria Vesta shares are owned by institutional investors. Comparatively, 26.5% of AFC Gamma shares are owned by institutional investors. 26.2% of AFC Gamma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.

Summary

AFC Gamma beats Corporación Inmobiliaria Vesta on 10 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.