Financial Firms AFC Gamma and Starwood Property Trust Compared

Analysts see more upside potential in AFC Gamma stock despite Starwood's higher revenue and earnings

Published on Mar. 3, 2026

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Starwood Property Trust (NYSE:STWD) and AFC Gamma (NASDAQ:AFCG) are both finance companies, but analysts believe AFC Gamma has more potential upside based on its consensus price target. While Starwood has higher revenue and earnings, AFC Gamma trades at a lower price-to-earnings ratio. The companies also differ in their institutional ownership, dividend payouts, and market volatility.

Why it matters

This analysis provides investors with a detailed comparison of two finance companies operating in different sectors, highlighting their relative strengths, weaknesses, and growth prospects. It can help investors make more informed decisions about which stock may be the better investment option.

The details

Starwood Property Trust has higher revenue and earnings than AFC Gamma, but AFC Gamma is trading at a lower price-to-earnings ratio, indicating it is currently the more affordable of the two stocks. Starwood Property Trust has stronger institutional ownership at 49.8% compared to AFC Gamma's 26.5%, but AFC Gamma has a higher insider ownership at 25.1% versus Starwood's 5.4%. Starwood Property Trust pays a higher annual dividend of $1.92 per share with a 10.8% yield, while AFC Gamma pays $0.60 per share with a 26.3% yield. However, Starwood's dividend payout ratio of 165.5% suggests it may not have sufficient earnings to cover the dividend long-term, compared to AFC Gamma's -57.7% payout ratio. Starwood also has higher market volatility with a beta of 1.13 versus AFC Gamma's 1.02.

  • The analysis is based on data as of March 1, 2026.

The players

Starwood Property Trust

A real estate investment trust (REIT) that operates in the commercial and residential lending, infrastructure lending, property, and investing and servicing segments.

AFC Gamma

A REIT that originates, structures, underwrites, and invests in senior secured loans and other commercial real estate loans and debt securities for companies in the cannabis industry.

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The takeaway

This analysis highlights the key differences between two finance companies operating in distinct sectors. While Starwood Property Trust has stronger financial metrics, AFC Gamma appears to offer more potential upside based on analyst price targets. Investors should carefully consider each company's unique business model, growth prospects, and valuation when deciding which stock may be the better investment.