Head-To-Head Survey: Equity LifeStyle Properties (NYSE:ELS) vs. Chicago Atlantic Real Estate Finance (NASDAQ:REFI)

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) and Equity LifeStyle Properties (NYSE:ELS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Insider and Institutional Ownership

25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 97.2% of Equity LifeStyle Properties shares are owned by institutional investors. 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Comparatively, 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

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 an annual dividend of $1.91 per share and has a dividend yield of 2.9%. 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 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Chicago Atlantic Real Estate Finance and Equity LifeStyle Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chicago Atlantic Real Estate Finance	64.57%	13.17%	10.10%
Equity LifeStyle Properties	24.05%	23.12%	6.51%

Earnings & Valuation

This table compares Chicago Atlantic Real Estate Finance and Equity LifeStyle Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chicago Atlantic Real Estate Finance	$57.15 million	5.46	$38.71 million	$2.00	7.95
Equity LifeStyle Properties	$1.53 billion	8.35	$367.01 million	$1.95	34.22

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.

Analyst Recommendations

This is a summary of current recommendations for Chicago Atlantic Real Estate Finance and Equity LifeStyle Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chicago Atlantic Real Estate Finance	0	0	2	1	3.33
Equity LifeStyle Properties	0	3	6	1	2.80

Chicago Atlantic Real Estate Finance presently has a consensus price target of $20.00, indicating a potential upside of 25.87%. Equity LifeStyle Properties has a consensus price target of $73.78, indicating a potential upside of 10.55%. 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 Equity LifeStyle Properties.

Risk and Volatility

Chicago Atlantic Real Estate Finance has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Equity LifeStyle Properties has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

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.

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.