Independence Realty Trust (NYSE:IRT – Get Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
Independence Realty Trust has a beta of 1.21, indicating that its share price is 21% more 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.
Institutional and Insider Ownership
88.3% of Independence Realty Trust shares are held by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by company insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independence Realty Trust | $660.98 million | 6.99 | -$17.23 million | N/A | N/A |
| Chicago Atlantic Real Estate Finance | $55.79 million | 5.63 | $38.71 million | $2.00 | 8.00 |
Chicago Atlantic Real Estate Finance has lower revenue, but higher earnings than Independence Realty Trust.
Dividends
Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 11.8%. 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.
Profitability
This table compares Independence Realty Trust and Chicago Atlantic Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independence Realty Trust | -0.03% | -0.01% | N/A |
| Chicago Atlantic Real Estate Finance | 64.57% | 13.17% | 10.10% |
Analyst Ratings
This is a summary of recent ratings and price targets for Independence Realty Trust and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independence Realty Trust | 0 | 2 | 4 | 0 | 2.67 |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 1 | 3.33 |
Independence Realty Trust currently has a consensus target price of $21.50, indicating a potential upside of 4.75%. Chicago Atlantic Real Estate Finance has a consensus target price of $20.00, indicating 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 Independence Realty Trust.
Summary
Chicago Atlantic Real Estate Finance beats Independence Realty Trust on 9 of the 16 factors compared between the two stocks.
About Independence Realty Trust
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.
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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