Claros Mortgage Trust (NYSE:CMTG – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
Claros Mortgage Trust has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
Valuation and Earnings
This table compares Claros Mortgage Trust and Chicago Atlantic Real Estate Finance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Claros Mortgage Trust | $187.83 million | 0.89 | -$489.07 million | ($3.83) | -0.31 |
| Chicago Atlantic Real Estate Finance | $55.39 million | 4.31 | $36.01 million | $1.37 | 6.80 |
Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Chicago Atlantic Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Claros Mortgage Trust and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
| Chicago Atlantic Real Estate Finance | 54.57% | 11.53% | 8.06% |
Institutional and Insider Ownership
89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 2.6% of Claros Mortgage Trust shares are owned by insiders. Comparatively, 6.5% of Chicago Atlantic Real Estate Finance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Claros Mortgage Trust and Chicago Atlantic Real Estate Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
| Chicago Atlantic Real Estate Finance | 1 | 2 | 2 | 0 | 2.20 |
Claros Mortgage Trust currently has a consensus price target of $2.08, indicating a potential upside of 75.81%. Chicago Atlantic Real Estate Finance has a consensus price target of $15.33, indicating a potential upside of 64.70%. Given Claros Mortgage Trust’s higher possible upside, analysts clearly believe Claros Mortgage Trust is more favorable than Chicago Atlantic Real Estate Finance.
Summary
Chicago Atlantic Real Estate Finance beats Claros Mortgage Trust on 10 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
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.
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