AG Mortgage Investment Trust (NYSE:MITT – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Profitability
This table compares AG Mortgage Investment Trust and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AG Mortgage Investment Trust | 8.55% | 15.59% | 0.61% |
| Chicago Atlantic Real Estate Finance | 54.57% | 11.53% | 8.06% |
Dividends
AG Mortgage Investment Trust pays an annual dividend of $0.96 per share and has a dividend yield of 15.0%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 16.9%. AG Mortgage Investment Trust pays out 129.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chicago Atlantic Real Estate Finance pays out 137.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has increased its dividend for 2 consecutive years and Chicago Atlantic Real Estate Finance has increased its dividend for 1 consecutive years.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AG Mortgage Investment Trust | $480.33 million | 0.42 | $48.67 million | $0.74 | 8.67 |
| Chicago Atlantic Real Estate Finance | $55.39 million | 5.15 | $36.01 million | $1.37 | 8.14 |
AG Mortgage Investment Trust has higher revenue and earnings than Chicago Atlantic Real Estate Finance. Chicago Atlantic Real Estate Finance is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
AG Mortgage Investment Trust has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for AG Mortgage Investment Trust and Chicago Atlantic Real Estate Finance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AG Mortgage Investment Trust | 0 | 3 | 5 | 0 | 2.62 |
| Chicago Atlantic Real Estate Finance | 0 | 3 | 2 | 0 | 2.40 |
AG Mortgage Investment Trust presently has a consensus target price of $8.92, suggesting a potential upside of 39.00%. Chicago Atlantic Real Estate Finance has a consensus target price of $15.33, suggesting a potential upside of 37.58%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AG Mortgage Investment Trust is more favorable than Chicago Atlantic Real Estate Finance.
Institutional & Insider Ownership
27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 3.3% of AG Mortgage Investment Trust shares are owned by company insiders. Comparatively, 6.5% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
AG Mortgage Investment Trust beats Chicago Atlantic Real Estate Finance on 11 of the 17 factors compared between the two stocks.
About AG Mortgage Investment Trust
AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.
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.
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