Analyzing AFC Gamma (NASDAQ:AFCG) & Altisource Portfolio Solutions (NASDAQ:ASPS)

AFC Gamma (NASDAQ:AFCG) and Altisource Portfolio Solutions (NASDAQ:ASPS) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

26.5% of AFC Gamma shares are held by institutional investors. Comparatively, 41.4% of Altisource Portfolio Solutions shares are held by institutional investors. 25.1% of AFC Gamma shares are held by insiders. Comparatively, 19.1% of Altisource Portfolio Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for AFC Gamma and Altisource Portfolio Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	2	0	0	1.67
Altisource Portfolio Solutions	1	0	0	1	2.50

AFC Gamma currently has a consensus price target of $4.50, suggesting a potential upside of 49.50%. Altisource Portfolio Solutions has a consensus price target of $8.00, suggesting a potential upside of 29.45%. Given AFC Gamma’s higher probable upside, equities research analysts plainly believe AFC Gamma is more favorable than Altisource Portfolio Solutions.

Risk & Volatility

AFC Gamma has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Altisource Portfolio Solutions has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Earnings & Valuation

This table compares AFC Gamma and Altisource Portfolio Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$31.32 million	2.26	-$20.67 million	($0.95)	-3.17
Altisource Portfolio Solutions	$170.98 million	0.41	$1.62 million	($0.12)	-51.50

Altisource Portfolio Solutions has higher revenue and earnings than AFC Gamma. Altisource Portfolio Solutions is trading at a lower price-to-earnings ratio than AFC Gamma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AFC Gamma and Altisource Portfolio Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	-70.17%	0.99%	0.62%
Altisource Portfolio Solutions	0.94%	-0.45%	0.34%

About AFC Gamma

AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The company has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. AFC Gamma, Inc. was incorporated in 2020 and is based in West Palm Beach, Florida.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.