Chicago Atlantic BDC (NASDAQ:LIEN) versus Charles Schwab (NYSE:SCHW) Head to Head Contrast

Charles Schwab (NYSE:SCHW) and Chicago Atlantic BDC (NASDAQ:LIEN) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Risk and Volatility

Charles Schwab has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Chicago Atlantic BDC has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Charles Schwab and Chicago Atlantic BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles Schwab	38.79%	24.53%	2.14%
Chicago Atlantic BDC	52.82%	11.66%	10.21%

Dividends

Charles Schwab pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. Chicago Atlantic BDC pays an annual dividend of $1.36 per share and has a dividend yield of 14.0%. Charles Schwab pays out 23.3% of its earnings in the form of a dividend. Chicago Atlantic BDC pays out 97.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Charles Schwab has increased its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Charles Schwab and Chicago Atlantic BDC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charles Schwab	$23.92 billion	7.06	$8.85 billion	$5.50	17.76
Chicago Atlantic BDC	$54.30 million	4.07	$33.28 million	$1.39	6.97

Charles Schwab has higher revenue and earnings than Chicago Atlantic BDC. Chicago Atlantic BDC is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Charles Schwab and Chicago Atlantic BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles Schwab	1	3	16	1	2.81
Chicago Atlantic BDC	0	1	0	0	2.00

Charles Schwab currently has a consensus price target of $121.17, indicating a potential upside of 24.05%. Given Charles Schwab’s stronger consensus rating and higher possible upside, analysts clearly believe Charles Schwab is more favorable than Chicago Atlantic BDC.

Insider & Institutional Ownership

84.4% of Charles Schwab shares are owned by institutional investors. Comparatively, 4.4% of Chicago Atlantic BDC shares are owned by institutional investors. 6.3% of Charles Schwab shares are owned by insiders. Comparatively, 12.9% of Chicago Atlantic BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Charles Schwab beats Chicago Atlantic BDC on 14 of the 18 factors compared between the two stocks.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It also provides digital retirement calculators; integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access; self-service education and support tools; online research and analysis tools; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

About Chicago Atlantic BDC

Chicago Atlantic BDC Inc. is a specialty finance company which has elected to be regulated as a business development company. Its investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. Chicago Atlantic BDC Inc., formerly known as CHICAGO ATLNTIC, is based in NEW YORK.