Head to Head Review: Safe and Green Development (NASDAQ:SGD) vs. AFC Gamma (NASDAQ:AFCG)

Safe and Green Development (NASDAQ:SGD) and AFC Gamma (NASDAQ:AFCG) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Safe and Green Development and AFC Gamma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe and Green Development	0	0	0	0	0.00
AFC Gamma	0	2	2	1	2.80

AFC Gamma has a consensus target price of $11.67, suggesting a potential upside of 39.72%. Given AFC Gamma’s stronger consensus rating and higher possible upside, analysts plainly believe AFC Gamma is more favorable than Safe and Green Development.

Profitability

This table compares Safe and Green Development and AFC Gamma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe and Green Development	N/A	-492.68%	-76.18%
AFC Gamma	13.69%	12.93%	8.42%

Institutional & Insider Ownership

2.6% of Safe and Green Development shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 9.6% of Safe and Green Development shares are held by insiders. Comparatively, 26.2% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Safe and Green Development and AFC Gamma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe and Green Development	$173,188.00	21.04	-$4.20 million	N/A	N/A
AFC Gamma	$36.79 million	4.98	$20.95 million	$0.40	20.88

AFC Gamma has higher revenue and earnings than Safe and Green Development.

Risk and Volatility

Safe and Green Development has a beta of 5.24, indicating that its stock price is 424% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

AFC Gamma beats Safe and Green Development on 11 of the 13 factors compared between the two stocks.

About Safe and Green Development

Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.

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.