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ARL vs REFI

ARL
American Realty Investors, Inc.
BEARISH
Price
$16.66
Market Cap
$269.1M
Sector
Real Estate
AI Confidence
85%
REFI
Chicago Atlantic Real Estate Finance, Inc.
BEARISH
Price
$12.11
Market Cap
$255.3M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ARL
47.6
REFI
7.21
Forward P/E
ARL
--
REFI
6.31
P/B Ratio
ARL
0.44
REFI
0.83
P/S Ratio
ARL
5.48
REFI
4.67
EV/EBITDA
ARL
103.59
REFI
--

Profitability

Gross Margin
ARL
45.21%
REFI
100.0%
Operating Margin
ARL
-11.25%
REFI
57.7%
Profit Margin
ARL
11.74%
REFI
65.88%
ROE
ARL
0.86%
REFI
11.68%
ROA
ARL
-0.3%
REFI
8.37%

Growth

Revenue Growth
ARL
7.7%
REFI
2.7%
Earnings Growth
ARL
--
REFI
-3.3%

Financial Health

Debt/Equity
ARL
0.28
REFI
0.32
Current Ratio
ARL
3.13
REFI
25.91
Quick Ratio
ARL
2.79
REFI
25.91

Dividends

Dividend Yield
ARL
--
REFI
15.52%
Payout Ratio
ARL
0.0%
REFI
111.9%

AI Verdict

ARL BEARISH

The Advanced Deterministic Scorecard reveals severe financial health concerns with a Piotroski F-Score of just 2/9, indicating weak fundamentals. Despite a low Price/Book ratio of 0.44 and a current price ($16.66) near the Graham Number ($17.19), profitability is inconsistent, with a negative operating margin (-11.25%) and ROA (-0.30%). Earnings volatility is extreme, highlighted by a -35% average earnings surprise and a -216.7% most recent Q/Q EPS decline. Combined with a bearish technical trend (10/100) and lack of analyst coverage, the stock presents significant risk despite modest revenue growth and strong insider sentiment.

Strengths
Current price ($16.66) is near the defensive Graham Number ($17.19), suggesting limited downside in a liquidation scenario
Low Price/Book ratio of 0.44 indicates the stock trades below book value, potentially signaling undervaluation
Revenue growth of 7.70% YoY shows top-line expansion in a challenging real estate environment
Risks
Critically low Piotroski F-Score of 2/9 signals severe financial distress and weak operating performance
Negative operating margin (-11.25%) and ROA (-0.30%) reflect core business unprofitability
Extreme earnings volatility: average earnings surprise of -35% and a -216.7% Q/Q EPS decline indicate unreliable profitability
REFI BEARISH

REFI exhibits significant financial fragility, highlighted by a weak Piotroski F-Score of 3/9 and a bearish technical trend of 0/100. While the stock appears cheap on a P/E (7.21) and Price/Book (0.83) basis, it is a classic value trap characterized by an unsustainable dividend payout ratio of 111.90%. Consistent earnings misses over the last four quarters and negative YoY earnings growth suggest that the current valuation is a reflection of deteriorating fundamentals rather than an opportunity.

Strengths
Low P/E ratio of 7.21 relative to sector averages
Trading below book value (P/B 0.83)
Strong profit margins (65.88%)
Risks
Unsustainable dividend payout ratio (111.90%) indicating a high risk of a dividend cut
Weak Piotroski F-Score (3/9) signaling deteriorating financial health
Consistent failure to meet earnings estimates (0/4 beats in last 4 quarters)

Compare Another Pair

ARL vs REFI: Head-to-Head Comparison

This page compares American Realty Investors, Inc. (ARL) and Chicago Atlantic Real Estate Finance, Inc. (REFI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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