Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and Franklin Street Properties (NYSE:FSP – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Dividends
Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 11.9%. Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. Chicago Atlantic Real Estate Finance pays out 94.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Street Properties pays out -10.3% of its earnings in the form of a dividend.
Risk and Volatility
Chicago Atlantic Real Estate Finance has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Franklin Street Properties has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Chicago Atlantic Real Estate Finance | 63.27% | 13.29% | 10.10% |
| Franklin Street Properties | -32.11% | -5.88% | -3.87% |
Earnings & Valuation
This table compares Chicago Atlantic Real Estate Finance and Franklin Street Properties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $57.15 million | 5.41 | $38.71 million | $1.98 | 7.96 |
| Franklin Street Properties | $145.71 million | 1.37 | -$48.11 million | ($0.39) | -4.95 |
Chicago Atlantic Real Estate Finance has higher earnings, but lower revenue than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Chicago Atlantic Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Chicago Atlantic Real Estate Finance and Franklin Street Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 1 | 1 | 3.50 |
| Franklin Street Properties | 0 | 0 | 0 | 0 | 0.00 |
Chicago Atlantic Real Estate Finance presently has a consensus price target of $20.00, suggesting a potential upside of 26.82%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher possible upside, research analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than Franklin Street Properties.
Institutional and Insider Ownership
25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 61.4% of Franklin Street Properties shares are owned by institutional investors. 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Comparatively, 6.2% of Franklin Street Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Chicago Atlantic Real Estate Finance beats Franklin Street Properties on 13 of the 17 factors compared between the two stocks.
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.
About Franklin Street Properties
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.
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