Chicago Atlantic Real Estate Finance (NASDAQ:REFI – Get Free Report) and Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Profitability
This table compares Chicago Atlantic Real Estate Finance and Hannon Armstrong Sustainable Infrastructure Capital’s 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% |
| Hannon Armstrong Sustainable Infrastructure Capital | 59.56% | 11.53% | 3.93% |
Analyst Recommendations
This is a summary of current ratings and target prices for Chicago Atlantic Real Estate Finance and Hannon Armstrong Sustainable Infrastructure Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic Real Estate Finance | 0 | 0 | 2 | 1 | 3.33 |
| Hannon Armstrong Sustainable Infrastructure Capital | 0 | 1 | 10 | 2 | 3.08 |
Institutional and Insider Ownership
25.5% of Chicago Atlantic Real Estate Finance shares are held by institutional investors. Comparatively, 96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. 12.3% of Chicago Atlantic Real Estate Finance shares are held by company insiders. Comparatively, 2.0% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & 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, Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.
Valuation & Earnings
This table compares Chicago Atlantic Real Estate Finance and Hannon Armstrong Sustainable Infrastructure Capital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic Real Estate Finance | $55.79 million | 5.34 | $38.71 million | $2.00 | 7.59 |
| Hannon Armstrong Sustainable Infrastructure Capital | $413.05 million | 7.75 | $148.84 million | $1.78 | 15.17 |
Hannon Armstrong Sustainable Infrastructure Capital 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 Hannon Armstrong Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.
Dividends
Chicago Atlantic Real Estate Finance pays an annual dividend of $1.88 per share and has a dividend yield of 12.4%. Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 6.1%. 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. Hannon Armstrong Sustainable Infrastructure Capital pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Hannon Armstrong Sustainable Infrastructure Capital beats Chicago Atlantic Real Estate Finance on 10 of the 17 factors compared between the two stocks.
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 Hannon Armstrong Sustainable Infrastructure Capital
Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.
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