Critical Survey: Plutus Financial Group (NASDAQ:PLUT) vs. Chicago Atlantic Real Estate Finance (NASDAQ:REFI)

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) and Plutus Financial Group (NASDAQ:PLUT) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Insider & Institutional Ownership

25.5% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. 8.3% of Chicago Atlantic Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Chicago Atlantic Real Estate Finance and Plutus Financial Group”s 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	$54.95 million	4.96	$37.04 million	$1.69	7.64
Plutus Financial Group	$1.25 million	37.85	-$710,000.00	N/A	N/A

Chicago Atlantic Real Estate Finance has higher revenue and earnings than Plutus Financial Group.

Profitability

This table compares Chicago Atlantic Real Estate Finance and Plutus Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chicago Atlantic Real Estate Finance	64.78%	11.94%	8.55%
Plutus Financial Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Chicago Atlantic Real Estate Finance and Plutus Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chicago Atlantic Real Estate Finance	1	1	0	0	1.50
Plutus Financial Group	1	0	0	0	1.00

Chicago Atlantic Real Estate Finance presently has a consensus target price of $14.00, indicating a potential upside of 8.36%. 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 Plutus Financial Group.

Summary

Chicago Atlantic Real Estate Finance beats Plutus Financial Group on 9 of the 10 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 Plutus Financial Group

The Mission of Plutus Group “Integrity, Persistence, Professionalism, Innovation and Vitality” are the five core values of Plutus Group. The Company takes “Integrity” as the foundation of our business, “Persistence” as everything customer-oriented, and it provide customers with “Professional” products and quality services. The Company’s business strategy is to practice “Innovation” and “Vigor” in service to its customers. The Company has a development vision is to become a leading Asian financial institution. The Company believes that its greatest responsibility is to create common good with society. The Company will continue to use its influence on financial markets to create a new paradigm. Plutus Group provides financial services through its primary Hong Kong operating subsidiaries, Plutus Securities and Plutus Asset Management. Plutus Securities is licensed with the SFC to carry out Type 1 (dealing in securities) regulated activities and mainly offers (i) securities dealings and brokerage services; (ii) margin financing services; and (iii) underwriting and placing services and is also an exchange participant of the HKEx. Plutus Asset Management is licensed with the SFC to carry out Type 4 (advising on securities) and Type 9 (asset management) regulated activities in Hong Kong and mainly offers (i) asset management services and (ii) investment advisory services to our customers. Our team is familiar with the local and global financial markets and has extensive experience in investment and asset management. Through comprehensive training and our dedication to quality services, our team provides customers with comprehensive professional analysis and investment advice. The principal executive offices of the Company are located at 8/F, 80 Gloucester Road, Wan Chai, Hong Kong. The Company’s registered office in the Cayman Islands is currently located at the office of Quality Corporate Services Ltd., Suite 102, Cannon Place, P.O. Box 712, North Sound Rd., George Town, Grand Cayman, KY1-9006 Cayman Islands, which may be changed from time to time at the discretion of directors. The Company’s agent for service of process in the United States is The Crone Law Group P.C., 500 Fifth Ave, Suite 938, New York, NY.