Chicago Atlantic BDC (NASDAQ:LIEN) & Deutsche Boerse (OTCMKTS:DBOEY) Critical Analysis

Deutsche Boerse (OTCMKTS:DBOEY – Get Free Report) and Chicago Atlantic BDC (NASDAQ:LIEN – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Deutsche Boerse and Chicago Atlantic BDC, as reported by MarketBeat.com.

Dividends

Deutsche Boerse pays an annual dividend of $0.29 per share and has a dividend yield of 0.8%. Chicago Atlantic BDC pays an annual dividend of $1.36 per share and has a dividend yield of 15.0%. Deutsche Boerse pays out 21.3% of its earnings in the form of a dividend. Chicago Atlantic BDC pays out 97.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Deutsche Boerse has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Chicago Atlantic BDC has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares Deutsche Boerse and Chicago Atlantic BDC’s net margins, return on equity and return on assets.

Insider and Institutional Ownership

4.4% of Chicago Atlantic BDC shares are held by institutional investors. 12.9% of Chicago Atlantic BDC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Deutsche Boerse and Chicago Atlantic BDC”s gross revenue, earnings per share and valuation.

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

Summary

Deutsche Boerse beats Chicago Atlantic BDC on 9 of the 15 factors compared between the two stocks.

About Deutsche Boerse

(Get Free Report)

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.

About Chicago Atlantic BDC

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Chicago Atlantic BDC Inc. is a specialty finance company which has elected to be regulated as a business development company. Its investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. Chicago Atlantic BDC Inc., formerly known as CHICAGO ATLNTIC, is based in NEW YORK.