Financial Survey: Newmark Group (NASDAQ:NMRK) versus Sunrise Realty Trust (NASDAQ:SUNS)

Newmark Group (NASDAQ:NMRK) and Sunrise Realty Trust (NASDAQ:SUNS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Dividends

Newmark Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.3%. Newmark Group pays out 17.6% of its earnings in the form of a dividend. 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.

Volatility and Risk

Newmark Group has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares Newmark Group and Sunrise Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmark Group	$3.29 billion	0.88	$126.19 million	$0.68	23.13
Sunrise Realty Trust	$21.57 million	4.91	$12.14 million	$0.94	8.33

Newmark Group has higher revenue and earnings than Sunrise Realty Trust. Sunrise Realty Trust is trading at a lower price-to-earnings ratio than Newmark Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

58.4% of Newmark Group shares are owned by institutional investors. 3.1% of Newmark Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Newmark Group and Sunrise Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newmark Group	3.83%	24.97%	7.74%
Sunrise Realty Trust	56.29%	7.70%	5.35%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Newmark Group and Sunrise Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmark Group	0	2	6	0	2.75
Sunrise Realty Trust	2	1	1	0	1.75

Newmark Group presently has a consensus price target of $17.80, suggesting a potential upside of 13.16%. Sunrise Realty Trust has a consensus price target of $10.38, suggesting a potential upside of 32.50%. Given Sunrise Realty Trust’s higher possible upside, analysts clearly believe Sunrise Realty Trust is more favorable than Newmark Group.

Summary

Newmark Group beats Sunrise Realty Trust on 11 of the 16 factors compared between the two stocks.

About Newmark Group

Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc.operates is a subsidiary of Cantor Fitzgerald, L.P.

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.