AFC Gamma (NASDAQ:AFCG – Get Rating) and NewLake Capital Partners (OTC:NLCP – Get Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.
Analyst Ratings
This is a breakdown of current ratings and target prices for AFC Gamma and NewLake Capital Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AFC Gamma | 0 | 1 | 2 | 0 | 2.67 |
| NewLake Capital Partners | 0 | 0 | 0 | 0 | N/A |
AFC Gamma presently has a consensus price target of $19.33, suggesting a potential upside of 50.92%. NewLake Capital Partners has a consensus price target of $23.00, suggesting a potential upside of 79.27%. Given NewLake Capital Partners’ higher possible upside, analysts clearly believe NewLake Capital Partners is more favorable than AFC Gamma.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AFC Gamma | $69.40 million | 3.78 | $35.93 million | $1.77 | 7.24 |
| NewLake Capital Partners | N/A | N/A | N/A | N/A | N/A |
AFC Gamma has higher revenue and earnings than NewLake Capital Partners.
Institutional and Insider Ownership
33.7% of AFC Gamma shares are owned by institutional investors. 28.5% 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 is poised for long-term growth.
Profitability
This table compares AFC Gamma and NewLake Capital Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AFC Gamma | 43.99% | 16.66% | 11.96% |
| NewLake Capital Partners | N/A | N/A | N/A |
Summary
AFC Gamma beats NewLake Capital Partners on 7 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 types of loans and debt securities for established companies operating in the cannabis industry in states that have legalized medical and/or adult use cannabis. 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. AFC Gamma, Inc. 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.
About NewLake Capital Partners
NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 32 cultivation facilities and dispensaries that are leased to single tenants on a triple-net basis.
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