Ready Capital Corp (RC) vs Chicago Atlantic Real Estate Finance, Inc. (REFI)

Ready Capital Corp and Chicago Atlantic Real Estate Finance, Inc. are both Reit Mortgage companies. Chicago Atlantic Real Estate Finance, Inc. is the larger, with a market value of $240.6M against $185.0M — 1.3× the size. Ready Capital Corp has negative trailing earnings, so its P/E is not meaningful; Chicago Atlantic Real Estate Finance, Inc. trades at 6.7×. Chicago Atlantic Real Estate Finance, Inc. grew revenue faster over the last twelve months: −3.77% against −43.0%. Chicago Atlantic Real Estate Finance, Inc. has the higher net margin (54.6% vs −134.1%) and the higher return on invested capital (6.47% vs 6.29%). Both pay a dividend; Chicago Atlantic Real Estate Finance, Inc. yields more (20.2% vs 3.64%). Across the 19 metrics below, Chicago Atlantic Real Estate Finance, Inc. leads on 10 and Ready Capital Corp on 9.

Valuation

Metric RC REFI Reit Mortgage median
P/E n/m 6.71 7.10
P/S 0.43 3.67 1.77
P/B 0.15 0.66 0.55
Price to free cash flow 0.15 7.35 5.36
EV/EBITDA 6.39 6.70 28.29
EV/Sales 7.32 3.43 15.90
Earnings yield (315.45%) 14.91% 8.10%
Free cash flow yield 687.40% 13.60% 13.00%

Profitability

Metric RC REFI Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 101.42% 55.37% 35.40%
Net margin (134.14%) 54.57% 11.85%
Free cash flow margin 297.03% 49.97% 26.68%
Return on equity (37.06%) 9.61% 4.81%
Return on assets (7.25%) 6.41% 0.62%
Return on invested capital 6.29% 6.47% 1.22%

Growth

Metric RC REFI Reit Mortgage median
Revenue growth (TTM) (43.02%) (3.77%) 4.70%
EPS growth (last fiscal year) 45.25% (10.64%) 45.25%
Revenue growth, 5-year CAGR 17.09% — 14.60%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric RC REFI Reit Mortgage median
Debt to equity 2.29 0.00 3.30
Current ratio 1.91 0.09 1.00
Net debt to EBITDA 6.30 (0.44) 18.31

Dividend

Metric RC REFI Reit Mortgage median
Dividend yield 3.64% 20.17% 17.34%
Payout ratio — 1.37 1.28

Size

Metric RC REFI Reit Mortgage median
Market cap 185.01m 240.59m 479.53m

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