Head to Head Comparison: CV (OTCMKTS:CVHL) and AFC Gamma (NASDAQ:AFCG)

CV (OTCMKTS:CVHL) and AFC Gamma (NASDAQ:AFCG) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Risk & Volatility

CV has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CV and AFC Gamma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV	0	0	0	0	0.00
AFC Gamma	1	2	0	0	1.67

AFC Gamma has a consensus price target of $4.50, suggesting a potential upside of 33.53%. Given AFC Gamma’s stronger consensus rating and higher possible upside, analysts plainly believe AFC Gamma is more favorable than CV.

Institutional & Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. 7.6% of CV shares are held by insiders. Comparatively, 30.7% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CV	N/A	N/A	N/A
AFC Gamma	-43.21%	1.48%	0.85%

Valuation & Earnings

This table compares CV and AFC Gamma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CV	$26.73 million	0.05	-$16.24 million	N/A	N/A
AFC Gamma	$21.97 million	3.61	-$20.67 million	($0.64)	-5.27

CV has higher revenue and earnings than AFC Gamma.

Summary

AFC Gamma beats CV on 7 of the 11 factors compared between the two stocks.

About CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.

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.