BrightSpire Capital (NYSE:BRSP – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Dividends
BrightSpire Capital pays an annual dividend of $0.64 per share and has a dividend yield of 13.4%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 17.6%. BrightSpire Capital pays out -278.3% of its earnings in the form of a dividend. 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 raised 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 BrightSpire Capital and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BrightSpire Capital | -20.43% | 7.01% | 1.80% |
| Chicago Atlantic Real Estate Finance | 54.57% | 11.53% | 8.06% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BrightSpire Capital | $194.89 million | 3.09 | -$31.15 million | ($0.23) | -20.70 |
| Chicago Atlantic Real Estate Finance | $53.45 million | 5.12 | $36.01 million | $1.37 | 7.80 |
Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than BrightSpire Capital. BrightSpire Capital 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for BrightSpire Capital and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BrightSpire Capital | 2 | 0 | 4 | 0 | 2.33 |
| Chicago Atlantic Real Estate Finance | 0 | 3 | 2 | 0 | 2.40 |
BrightSpire Capital currently has a consensus price target of $6.50, indicating a potential upside of 36.55%. Chicago Atlantic Real Estate Finance has a consensus price target of $15.33, indicating a potential upside of 43.57%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Chicago Atlantic Real Estate Finance is more favorable than BrightSpire Capital.
Volatility and Risk
BrightSpire Capital has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.
Insider & Institutional Ownership
56.6% of BrightSpire Capital shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 2.8% of BrightSpire Capital shares are owned by company insiders. Comparatively, 6.5% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Chicago Atlantic Real Estate Finance beats BrightSpire Capital on 12 of the 17 factors compared between the two stocks.
About BrightSpire Capital
BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 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.
Receive News & Ratings for BrightSpire Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BrightSpire Capital and related companies with MarketBeat.com's FREE daily email newsletter.
