Head to Head Analysis: InnSuites Hospitality Trust (NYSE:IHT) versus Chicago Atlantic Real Estate Finance (NASDAQ:REFI)

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

Volatility and Risk

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

Insider and Institutional Ownership

25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 2.5% of InnSuites Hospitality Trust shares are owned by institutional investors. 12.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Comparatively, 73.9% of InnSuites Hospitality Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers 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 14.0%. 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 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. InnSuites Hospitality Trust pays out -20.0% of its earnings in the form of a dividend.

Profitability

This table compares Chicago Atlantic Real Estate Finance and InnSuites Hospitality Trust’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%
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%

Valuation & Earnings

This table compares Chicago Atlantic Real Estate Finance and InnSuites Hospitality Trust”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	$54.78 million	5.11	$38.71 million	$1.88	7.13
InnSuites Hospitality Trust	$7.69 million	2.75	$200,000.00	($0.10)	-24.15

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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chicago Atlantic Real Estate Finance and InnSuites Hospitality Trust, 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
InnSuites Hospitality Trust	0	0	0	0	0.00

Chicago Atlantic Real Estate Finance presently has a consensus target price of $20.00, indicating a potential upside of 49.25%. 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 InnSuites Hospitality Trust.

Summary

Chicago Atlantic Real Estate Finance beats InnSuites Hospitality Trust on 15 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 InnSuites Hospitality Trust

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.