Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and Ashford Hospitality Trust (NYSE:AHT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Chicago Atlantic Real Estate Finance and Ashford Hospitality Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chicago Atlantic Real Estate Finance | 61.75% | 14.02% | 11.32% |
| Ashford Hospitality Trust | -15.11% | N/A | -5.36% |
Earnings & Valuation
This table compares Chicago Atlantic Real Estate Finance and Ashford Hospitality Trust’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $48.90 million | 5.63 | $32.29 million | $2.03 | 7.47 |
| Ashford Hospitality Trust | $1.24 billion | 0.06 | -$139.82 million | ($6.50) | -0.31 |
Institutional & Insider Ownership
25.7% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 32.0% of Ashford Hospitality Trust shares are owned by institutional investors. 10.5% of Chicago Atlantic Real Estate Finance shares are owned by insiders. Comparatively, 1.2% of Ashford Hospitality Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Chicago Atlantic Real Estate Finance has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Ashford Hospitality Trust has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Chicago Atlantic Real Estate Finance and Ashford Hospitality Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic Real Estate Finance | 0 | 2 | 2 | 0 | 2.50 |
| Ashford Hospitality Trust | 0 | 1 | 0 | 0 | 2.00 |
Chicago Atlantic Real Estate Finance presently has a consensus target price of $17.50, suggesting a potential upside of 15.44%. Ashford Hospitality Trust has a consensus target price of $6.50, suggesting a potential upside of 227.46%. Given Ashford Hospitality Trust’s higher probable upside, analysts clearly believe Ashford Hospitality Trust is more favorable than Chicago Atlantic Real Estate Finance.
Summary
Chicago Atlantic Real Estate Finance beats Ashford Hospitality Trust on 10 of the 14 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. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators in the cannabis industry. It 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. The company was incorporated in 2021 and is based in Chicago, Illinois.
About Ashford Hospitality Trust
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
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