AGNC Investment (NASDAQ:AGNCM) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI) Head to Head Comparison

AGNC Investment (NASDAQ:AGNCM) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Dividends

AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 6.8%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 17.3%. 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. Chicago Atlantic Real Estate Finance has increased its dividend for 1 consecutive years. Chicago Atlantic Real Estate Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares AGNC Investment and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
Chicago Atlantic Real Estate Finance	54.57%	11.53%	8.06%

Institutional and Insider Ownership

25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 6.5% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AGNC Investment and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
Chicago Atlantic Real Estate Finance	0	3	2	0	2.40

Chicago Atlantic Real Estate Finance has a consensus price target of $15.33, indicating a potential upside of 40.93%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than AGNC Investment.

Valuation & Earnings

This table compares AGNC Investment and Chicago Atlantic Real Estate Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A
Chicago Atlantic Real Estate Finance	$55.39 million	5.03	$36.01 million	$1.37	7.94

Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than AGNC Investment.

Summary

Chicago Atlantic Real Estate Finance beats AGNC Investment on 10 of the 12 factors compared between the two stocks.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.

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.