Critical Review: Chicago Atlantic Real Estate Finance (NASDAQ:REFI) & InnSuites Hospitality Trust (NYSE:IHT)

InnSuites Hospitality Trust (NYSE:IHTGet Free Report) and Chicago Atlantic Real Estate Finance (NASDAQ:REFIGet Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Institutional and Insider Ownership

2.5% of InnSuites Hospitality Trust shares are owned by institutional investors. Comparatively, 25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 73.9% of InnSuites Hospitality Trust shares are owned by company insiders. Comparatively, 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 13.9%. InnSuites Hospitality Trust pays out -20.0% of its earnings in the form of a dividend. Chicago Atlantic Real Estate Finance pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

InnSuites Hospitality Trust has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Chicago Atlantic Real Estate Finance has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for InnSuites Hospitality Trust and Chicago Atlantic Real Estate Finance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InnSuites Hospitality Trust 0 0 0 0 0.00
Chicago Atlantic Real Estate Finance 0 0 2 1 3.33

Chicago Atlantic Real Estate Finance has a consensus target price of $20.00, indicating a potential upside of 48.26%. Given Chicago Atlantic Real Estate Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Chicago Atlantic Real Estate Finance is more favorable than InnSuites Hospitality Trust.

Profitability

This table compares InnSuites Hospitality 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
InnSuites Hospitality Trust -11.56% -40.28% -5.83%
Chicago Atlantic Real Estate Finance 64.57% 13.17% 10.10%

Valuation and Earnings

This table compares InnSuites Hospitality Trust and Chicago Atlantic Real Estate Finance”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InnSuites Hospitality Trust $7.69 million 2.74 $200,000.00 ($0.10) -24.05
Chicago Atlantic Real Estate Finance $54.78 million 5.15 $38.71 million $1.88 7.18

Chicago Atlantic Real Estate Finance has higher revenue and earnings than InnSuites Hospitality Trust. InnSuites Hospitality Trust 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.

Summary

Chicago Atlantic Real Estate Finance beats InnSuites Hospitality Trust on 15 of the 17 factors compared between the two stocks.

About InnSuites Hospitality Trust

(Get Free Report)

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.

About Chicago Atlantic Real Estate Finance

(Get Free Report)

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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