T. Rowe Price Group (NASDAQ:TROW – Get Free Report) and AFC Gamma (NASDAQ:AFCG – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
73.4% of T. Rowe Price Group shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 1.6% of T. Rowe Price Group shares are held by insiders. Comparatively, 30.7% of AFC Gamma shares are held by 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 T. Rowe Price Group and AFC Gamma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| T. Rowe Price Group | 29.26% | 20.91% | 15.68% |
| AFC Gamma | 15.64% | 2.85% | 1.50% |
Analyst Recommendations
This is a summary of recent recommendations for T. Rowe Price Group and AFC Gamma, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| T. Rowe Price Group | 3 | 10 | 1 | 0 | 1.86 |
| AFC Gamma | 1 | 1 | 0 | 0 | 1.50 |
T. Rowe Price Group presently has a consensus target price of $104.23, indicating a potential upside of 0.03%. Given T. Rowe Price Group’s stronger consensus rating and higher possible upside, research analysts clearly believe T. Rowe Price Group is more favorable than AFC Gamma.
Valuation & Earnings
This table compares T. Rowe Price Group and AFC Gamma”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| T. Rowe Price Group | $7.59 billion | 2.93 | $2.09 billion | $9.97 | 10.45 |
| AFC Gamma | $31.32 million | 2.18 | -$20.67 million | $0.19 | 15.84 |
T. Rowe Price Group has higher revenue and earnings than AFC Gamma. T. Rowe Price Group is trading at a lower price-to-earnings ratio than AFC Gamma, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
T. Rowe Price Group has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Dividends
T. Rowe Price Group pays an annual dividend of $5.20 per share and has a dividend yield of 5.0%. AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.6%. T. Rowe Price Group pays out 52.2% of its earnings in the form of a dividend. AFC Gamma pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. T. Rowe Price Group has increased its dividend for 39 consecutive years.
Summary
T. Rowe Price Group beats AFC Gamma on 14 of the 17 factors compared between the two stocks.
About T. Rowe Price Group
T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Shanghai, China; Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, Amsterdam, Netherlands and Washington, DC.
About AFC Gamma
AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. 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. The company 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.
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