Analyzing DeFi Development (DFDV) and Its Rivals

DeFi Development (NASDAQ:DFDV) is one of 342 public companies in the “Financial Services” industry, but how does it compare to its peers? We will compare DeFi Development to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

0.5% of DeFi Development shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are owned by institutional investors. 23.6% of DeFi Development shares are owned by insiders. Comparatively, 22.0% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares DeFi Development and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DeFi Development	$11.39 million	-$73.79 million	-0.33
DeFi Development Competitors	$6.42 billion	$1.09 billion	8.38

DeFi Development’s peers have higher revenue and earnings than DeFi Development. DeFi Development is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

DeFi Development has a beta of -3.2, suggesting that its share price is 420% less volatile than the S&P 500. Comparatively, DeFi Development’s peers have a beta of 2.49, suggesting that their average share price is 149% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for DeFi Development and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Development	1	0	1	0	2.00
DeFi Development Competitors	1973	6873	11619	443	2.50

DeFi Development presently has a consensus target price of $10.40, indicating a potential upside of 215.15%. As a group, “Financial Services” companies have a potential downside of 1.58%. Given DeFi Development’s higher possible upside, research analysts plainly believe DeFi Development is more favorable than its peers.

Profitability

This table compares DeFi Development and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeFi Development	-1,319.45%	17.97%	5.02%
DeFi Development Competitors	-409.56%	-15.97%	-6.09%

Summary

DeFi Development peers beat DeFi Development on 9 of the 13 factors compared.

DeFi Development Company Profile

We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which we believe represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. We have developed a flexible, two-sided, B2B marketplace that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on our platform, set up their own profile, and submit and manage loan requests on their dashboard in a digital experience. Our algorithms automatically match borrowers to their best loan options or to our internal capital markets advisors that guide the borrower throughout the process and connect them with a potentially suitable loan product and lender. Originators that work at commercial mortgage lenders can access their accounts on our platform to view, sort, and communicate with their matched borrowers in real-time, tracking their loan progress through our portal. Capital markets advisors that work internally have their own interface that gives them access to targeted loan opportunities empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which is intended to enhance our brand. We believe that as we scale, we can use the same technology to provide similar services across the commercial property and small business value chain. Our mission is to remove frictions from traditional commercial property financing, making it easier and more cost-effective for all parties in the transaction. We intend to disintermediate commercial real estate financing, flattening the playing field for commercial property owners and developers, and lenders of all sizes, democratizing an otherwise fractured and elitist market. We were originally formed as Janover Ventures LLC, a Florida limited liability company, on November 28, 2018, and converted to Janover Inc., a Delaware corporation, on March 9, 2021. We are headquartered at 6401 Congress Avenue, Suite 250, Boca Raton, Florida.