Financial Review: AGNC Investment (NASDAQ:AGNCZ) versus AFC Gamma (NASDAQ:AFCG)

AFC Gamma (NASDAQ:AFCG) and AGNC Investment (NASDAQ:AGNCZ) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for AFC Gamma and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	2	2	0	0	1.50
AGNC Investment	0	0	0	0	0.00

AFC Gamma currently has a consensus price target of $5.75, suggesting a potential upside of 119.47%. Given AFC Gamma’s stronger consensus rating and higher probable upside, research analysts plainly believe AFC Gamma is more favorable than AGNC Investment.

Earnings and Valuation

This table compares AFC Gamma and AGNC Investment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$31.32 million	1.97	-$20.67 million	($0.95)	-2.76
AGNC Investment	$1.80 billion	N/A	N/A	N/A	N/A

AGNC Investment has higher revenue and earnings than AFC Gamma.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are owned by institutional investors. 25.1% of AFC Gamma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	-70.17%	0.99%	0.62%
AGNC Investment	N/A	N/A	N/A

Summary

AFC Gamma beats AGNC Investment on 6 of the 8 factors compared between the two stocks.

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.