AFC Gamma (NASDAQ:AFCG) versus Armada Hoffler Properties (NYSE:AHH) Critical Contrast

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

Analyst Ratings

This is a summary of current recommendations for AFC Gamma and Armada Hoffler Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AFC Gamma 0 2 3 0 2.60
Armada Hoffler Properties 0 1 1 0 2.50

AFC Gamma currently has a consensus target price of $26.93, suggesting a potential upside of 29.14%. Armada Hoffler Properties has a consensus target price of $13.25, suggesting a potential downside of 0.60%. Given AFC Gamma’s stronger consensus rating and higher probable upside, analysts clearly believe AFC Gamma is more favorable than Armada Hoffler Properties.

Earnings and Valuation

This table compares AFC Gamma and Armada Hoffler Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AFC Gamma $5.25 million N/A $4.31 million N/A N/A
Armada Hoffler Properties $383.63 million 2.82 $29.15 million $1.10 12.12

Armada Hoffler Properties has higher revenue and earnings than AFC Gamma.

Dividends

AFC Gamma pays an annual dividend of $1.52 per share and has a dividend yield of 7.3%. Armada Hoffler Properties pays an annual dividend of $0.64 per share and has a dividend yield of 4.8%. Armada Hoffler Properties pays out 58.2% of its earnings in the form of a dividend. Armada Hoffler Properties has increased its dividend for 1 consecutive years.

Insider and Institutional Ownership

62.7% of Armada Hoffler Properties shares are owned by institutional investors. 12.1% of Armada Hoffler Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares AFC Gamma and Armada Hoffler Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AFC Gamma N/A N/A N/A
Armada Hoffler Properties 9.04% 5.80% 1.81%

Summary

Armada Hoffler Properties beats AFC Gamma on 8 of the 13 factors compared between the two stocks.

About AFC Gamma

AFC Gamma, Inc. originates, structures, underwrites, and manages senior secured loans and other types of loans for established companies operating in the cannabis industry in states that have legalized medicinal and/or adult use cannabis. It primarily originates loans structured as senior loans secured by real estate, equipment, licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. AFC Gamma, Inc. 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. The company was founded in 2020 and is based in West Palm Beach, Florida.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

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