AFC Gamma (NASDAQ:AFCG) versus Safe and Green Development (NASDAQ:SGD) Critical Survey

Safe and Green Development (NASDAQ:SGD) and AFC Gamma (NASDAQ:AFCG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Safe and Green Development has a beta of 5.24, meaning that its share price is 424% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Safe and Green Development and AFC Gamma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe and Green Development	N/A	-492.68%	-76.18%
AFC Gamma	13.69%	12.93%	8.42%

Earnings and Valuation

This table compares Safe and Green Development and AFC Gamma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe and Green Development	$173,188.00	21.04	-$4.20 million	N/A	N/A
AFC Gamma	$36.79 million	4.98	$20.95 million	$0.40	20.88

AFC Gamma has higher revenue and earnings than Safe and Green Development.

Analyst Ratings

This is a breakdown of current ratings and target prices for Safe and Green Development and AFC Gamma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe and Green Development	0	0	0	0	0.00
AFC Gamma	0	2	2	1	2.80

AFC Gamma has a consensus price target of $11.67, suggesting a potential upside of 39.72%. Given AFC Gamma’s stronger consensus rating and higher possible upside, analysts clearly believe AFC Gamma is more favorable than Safe and Green Development.

Insider & Institutional Ownership

2.6% of Safe and Green Development shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 9.6% of Safe and Green Development shares are held by insiders. Comparatively, 26.2% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

AFC Gamma beats Safe and Green Development on 11 of the 13 factors compared between the two stocks.

About Safe and Green Development

Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.

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.