Reviewing Sunrise Realty Trust (NASDAQ:SUNS) & Seven Hills Realty Trust (NASDAQ:SEVN)

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

Earnings and Valuation

This table compares Sunrise Realty Trust and Seven Hills Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrise Realty Trust	$21.57 million	4.37	$12.14 million	$0.97	7.19
Seven Hills Realty Trust	$26.81 million	N/A	N/A	$1.46	4.62

Sunrise Realty Trust has higher earnings, but lower revenue than Seven Hills Realty Trust. Seven Hills Realty 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 $1.29 per share and has a dividend yield of 18.5%. Seven Hills Realty Trust pays an annual dividend of $1.12 per share and has a dividend yield of 16.6%. Sunrise Realty Trust pays out 133.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seven Hills Realty Trust pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sunrise Realty Trust and Seven Hills Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrise Realty Trust	1	3	0	0	1.75
Seven Hills Realty Trust	0	1	5	0	2.83

Sunrise Realty Trust presently has a consensus target price of $6.50, indicating a potential downside of 6.74%. Seven Hills Realty Trust has a consensus target price of $9.75, indicating a potential upside of 44.66%. Given Seven Hills Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Seven Hills Realty Trust is more favorable than Sunrise Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrise Realty Trust	53.33%	8.25%	4.90%
Seven Hills Realty Trust	N/A	N/A	N/A

Summary

Seven Hills Realty Trust beats Sunrise Realty Trust on 6 of the 11 factors compared between the two stocks.

About Sunrise Realty Trust

Sunrise Realty Trust, Inc. is a real estate investment trust focused on commercial real estate finance. The company invests in and originates commercial real estate debt, seeking to generate income from loans and other investments secured by properties in the United States. Its investment activities are centered primarily on mortgage loans and other credit investments backed by commercial real estate. These investments may support the acquisition, refinancing, development, redevelopment or repositioning of properties, with the portfolio generally targeting opportunities in the middle-market commercial real estate sector.

About Seven Hills Realty Trust

Seven Hills Realty Trust is a real estate investment trust focused on commercial real estate lending. It originates and invests primarily in first mortgage loans secured by middle-market and transitional commercial properties. The trust’s investments are generally tied to properties in the United States. Seven Hills Realty Trust was formerly known as RMR Mortgage Trust and adopted its current name in 2022. It is externally managed by Tremont Realty Capital, an affiliate of The RMR Group.