McDonald's vs Chicago Atlantic Real Estate Finance Which Should You Buy?

McDonald's Corporation and Chicago Atlantic Real Estate Finance are two well-known companies in their respective industries. McDonald's, a global fast food giant, has been a staple in the restaurant industry for decades, while Chicago Atlantic Real Estate Finance focuses on real estate investment and management. Both companies have seen fluctuations in their stock prices over the years, with investors constantly comparing the two to determine which may be a better investment option. This comparison will analyze various factors such as financial performance, industry trends, and market outlook to determine which stock may offer better potential for investors.

McDonald's or Chicago Atlantic Real Estate Finance?

When comparing McDonald's and Chicago Atlantic Real Estate Finance, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between McDonald's and Chicago Atlantic Real Estate Finance.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. McDonald's has a dividend yield of 2.29%, while Chicago Atlantic Real Estate Finance has a dividend yield of 13.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. McDonald's reports a 5-year dividend growth of 8.26% year and a payout ratio of 58.34%. On the other hand, Chicago Atlantic Real Estate Finance reports a 5-year dividend growth of 0.00% year and a payout ratio of 106.26%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with McDonald's P/E ratio at 25.78 and Chicago Atlantic Real Estate Finance's P/E ratio at 8.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. McDonald's P/B ratio is -41.07 while Chicago Atlantic Real Estate Finance's P/B ratio is 1.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, McDonald's has seen a 5-year revenue growth of 0.30%, while Chicago Atlantic Real Estate Finance's is 4.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McDonald's's ROE at -168.78% and Chicago Atlantic Real Estate Finance's ROE at 13.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $295.10 for McDonald's and $16.13 for Chicago Atlantic Real Estate Finance. Over the past year, McDonald's's prices ranged from $243.53 to $317.90, with a yearly change of 30.54%. Chicago Atlantic Real Estate Finance's prices fluctuated between $14.82 and $17.65, with a yearly change of 19.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.