Equity LifeStyle Properties (NYSE:ELS – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings for Equity LifeStyle Properties and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity LifeStyle Properties | 0 | 3 | 6 | 1 | 2.80 |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 1 | 3.33 |
Equity LifeStyle Properties currently has a consensus price target of $73.78, suggesting a potential upside of 12.69%. Chicago Atlantic Real Estate Finance has a consensus price target of $20.00, suggesting a potential upside of 25.00%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher probable upside, analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than Equity LifeStyle Properties.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Equity LifeStyle Properties | 24.05% | 23.12% | 6.51% |
| Chicago Atlantic Real Estate Finance | 64.57% | 13.17% | 10.10% |
Insider and Institutional Ownership
97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.9%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 11.8%. Equity LifeStyle Properties pays out 97.9% 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 pays out 94.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity LifeStyle Properties has increased its dividend for 21 consecutive years. Chicago Atlantic Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Equity LifeStyle Properties has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.
Valuation & Earnings
This table compares Equity LifeStyle Properties and Chicago Atlantic Real Estate Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equity LifeStyle Properties | $1.53 billion | 8.20 | $367.01 million | $1.95 | 33.57 |
| Chicago Atlantic Real Estate Finance | $57.15 million | 5.50 | $38.71 million | $2.00 | 8.00 |
Equity LifeStyle Properties has higher revenue and earnings than Chicago Atlantic Real Estate Finance. Chicago Atlantic Real Estate Finance is trading at a lower price-to-earnings ratio than Equity LifeStyle Properties, indicating that it is currently the more affordable of the two stocks.
Summary
Equity LifeStyle Properties beats Chicago Atlantic Real Estate Finance on 9 of the 17 factors compared between the two stocks.
About Equity LifeStyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.
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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