Reviewing AFC Gamma (NASDAQ:AFCG) & Deutsche Boerse (OTCMKTS:DBOEY)

AFC Gamma (NASDAQ:AFCG) and Deutsche Boerse (OTCMKTS:DBOEY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Volatility & Risk

AFC Gamma has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Deutsche Boerse has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares AFC Gamma and Deutsche Boerse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	15.64%	2.85%	1.50%
Deutsche Boerse	33.04%	20.33%	0.64%

Earnings and Valuation

This table compares AFC Gamma and Deutsche Boerse”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	2.29	-$20.67 million	$0.19	16.68
Deutsche Boerse	$6.82 billion	8.73	$2.26 billion	$1.36	24.28

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

Dividends

AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.3%. Deutsche Boerse pays an annual dividend of $0.29 per share and has a dividend yield of 0.9%. AFC Gamma pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Deutsche Boerse pays out 21.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for AFC Gamma and Deutsche Boerse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	1	0	0	1.50
Deutsche Boerse	1	2	3	0	2.33

Institutional & Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. 30.7% of AFC Gamma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Deutsche Boerse beats AFC Gamma on 10 of the 15 factors compared between the two stocks.

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 Deutsche Boerse

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty. The company also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; Qontigo, an integrated suite of front-to-back investment management solution; and a central counterparty for equities and bonds, as well as provides pre-ipo and listing services. In addition, it offers custody and settlement services for securities; investment fund services; connectivity services; and global securities funding and financing, and collateral and liquidity management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, the company provides order routing, settlement, asset management, and custody; investment distribution and placement; infrastructure and post-trading; index, analytics, and risk; securities transactions settlement; securities custody and administration; and market data and analytics services. Additionally, it operates third clearing house Nodal Clear; and specialized software as a service platform for trading participants and digital business platform, as well as offers information technology solutions, including financial market, commodities market, and network connectivity solutions under the Deutsche Börse and 7 Market Technology brands. The company was founded in 1585 and is headquartered in Eschborn, Germany.