Head to Head Review: United Development Funding IV (OTCMKTS:UDFI) vs. Jernigan Capital (NASDAQ:JCAP)

United Development Funding IV (OTCMKTS:UDFI) and Jernigan Capital (NASDAQ:JCAP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Valuation and Earnings

This table compares United Development Funding IV and Jernigan Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Development Funding IV	N/A	N/A	N/A	N/A	N/A
Jernigan Capital	$634.79 million	1.48	$187.96 million	$2.59	6.56

Jernigan Capital has higher revenue and earnings than United Development Funding IV.

Profitability

This table compares United Development Funding IV and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Development Funding IV	N/A	N/A	N/A
Jernigan Capital	25.42%	38.63%	8.82%

Analyst Recommendations

This is a breakdown of current recommendations for United Development Funding IV and Jernigan Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Development Funding IV	0	0	0	0	0.00
Jernigan Capital	0	2	5	1	2.88

Jernigan Capital has a consensus price target of $25.20, suggesting a potential upside of 48.32%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Jernigan Capital is more favorable than United Development Funding IV.

Summary

Jernigan Capital beats United Development Funding IV on 8 of the 8 factors compared between the two stocks.

About United Development Funding IV

United Development Funding IV invests in secured loans for the acquisition and development of land into single-family home lots, and the construction of model and new single-family homes. It also makes equity investments in residential real estate. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. United Development Funding IV was founded in 2008 and is headquartered in Grapevine, Texas.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.