Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) and The RMR Group (NASDAQ:RMR – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Volatility & Risk
Sunrise Realty Trust has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Dividends
Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.1%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 9.4%. Sunrise Realty Trust pays out 127.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group pays out 148.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has increased its dividend for 1 consecutive years. Sunrise Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunrise Realty Trust | $21.57 million | 4.97 | $12.14 million | $0.94 | 8.44 |
| The RMR Group | $700.28 million | 0.88 | $17.60 million | $1.21 | 15.79 |
The RMR Group has higher revenue and earnings than Sunrise Realty Trust. Sunrise Realty Trust is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Sunrise Realty Trust and The RMR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunrise Realty Trust | 2 | 1 | 0 | 0 | 1.33 |
| The RMR Group | 0 | 2 | 2 | 0 | 2.50 |
Sunrise Realty Trust presently has a consensus price target of $8.75, indicating a potential upside of 10.34%. The RMR Group has a consensus price target of $19.00, indicating a potential downside of 0.58%. Given Sunrise Realty Trust’s higher possible upside, analysts plainly believe Sunrise Realty Trust is more favorable than The RMR Group.
Profitability
This table compares Sunrise Realty Trust and The RMR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunrise Realty Trust | 54.82% | 8.31% | 5.55% |
| The RMR Group | 3.23% | 3.44% | 2.05% |
Institutional & Insider Ownership
42.3% of The RMR Group shares are held by institutional investors. 28.5% of Sunrise Realty Trust shares are held by company insiders. Comparatively, 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
The RMR Group beats Sunrise Realty Trust on 10 of the 17 factors compared between the two stocks.
About Sunrise Realty Trust
Sunrise Realty Trust, Inc. engages in commercial real estate (CRE) lending business. It focuses on originating CRE debt investments and providing capital to borrowers and sponsors with transitional business plans collateralized by CRE assets. The company intends to create a diversified investment portfolio, targeting investments in senior mortgage loans, mezzanine loans, whole loans, B-notes, CMBS, and debt-like preferred equity securities across CRE asset classes. Sunrise Realty Trust, Inc. was incorporated in 2023 and is based in West Palm Beach, Florida.
About The RMR Group
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
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