Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) and KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Profitability
This table compares Sunrise Realty Trust and KKR Real Estate Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunrise Realty Trust | 54.82% | 8.33% | 5.28% |
| KKR Real Estate Finance Trust | -47.33% | -1.53% | -0.27% |
Analyst Ratings
This is a breakdown of current ratings for Sunrise Realty Trust and KKR Real Estate Finance Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunrise Realty Trust | 1 | 2 | 0 | 0 | 1.67 |
| KKR Real Estate Finance Trust | 2 | 5 | 1 | 1 | 2.11 |
Insider & Institutional Ownership
70.2% of KKR Real Estate Finance Trust shares are owned by institutional investors. 28.5% of Sunrise Realty Trust shares are owned by company insiders. Comparatively, 2.1% of KKR Real Estate Finance Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Sunrise Realty Trust and KKR Real Estate Finance Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunrise Realty Trust | $31.69 million | 3.32 | $12.14 million | $0.99 | 7.85 |
| KKR Real Estate Finance Trust | $435.60 million | 1.00 | -$47.05 million | ($3.28) | -2.28 |
Sunrise Realty Trust has higher earnings, but lower revenue than KKR Real Estate Finance Trust. KKR Real Estate Finance Trust is trading at a lower price-to-earnings ratio than Sunrise Realty Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.4%. KKR Real Estate Finance Trust pays an annual dividend of $0.40 per share and has a dividend yield of 5.4%. Sunrise Realty Trust pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KKR Real Estate Finance Trust pays out -12.2% of its earnings in the form of a dividend.
Risk & Volatility
Sunrise Realty Trust has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, KKR Real Estate Finance Trust has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Summary
Sunrise Realty Trust beats KKR Real Estate Finance 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 KKR Real Estate Finance Trust
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans. The company has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, New York.
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