Reviewing Corporación Inmobiliaria Vesta (NYSE:VTMX) and AFC Gamma (NASDAQ:AFCG)

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

Volatility and Risk

Corporación Inmobiliaria Vesta has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.05, indicating that its share 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	164.44%	15.40%	10.25%
AFC Gamma	13.69%	12.93%	8.42%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporación Inmobiliaria Vesta	$214.47 million	100.36	$316.64 million	$4.42	5.64
AFC Gamma	$64.18 million	2.96	$20.95 million	$0.40	21.63

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 summary of current recommendations and price targets for Corporación Inmobiliaria Vesta and AFC Gamma, as provided by MarketBeat.com.

	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 price target of $33.50, indicating a potential upside of 34.45%. AFC Gamma has a consensus price target of $11.67, indicating a potential upside of 34.87%. Given AFC Gamma’s stronger consensus rating and higher probable upside, analysts clearly believe AFC Gamma is more favorable than Corporación Inmobiliaria Vesta.

Insider & 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 large money managers, hedge funds and endowments 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 0.6%. AFC Gamma pays an annual dividend of $1.32 per share and has a dividend yield of 15.3%. Corporación Inmobiliaria Vesta pays out 3.6% 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 9 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.