Two Harbors Investments (NYSE:TWO – Get Free Report) and Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Dividends
Two Harbors Investments pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.5%. Two Harbors Investments pays out -64.9% of its earnings in the form of a dividend. Sunrise Realty Trust pays out 123.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Two Harbors Investments has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a summary of recent ratings for Two Harbors Investments and Sunrise Realty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Two Harbors Investments | 1 | 5 | 0 | 1 | 2.14 |
| Sunrise Realty Trust | 1 | 2 | 0 | 0 | 1.67 |
Institutional and Insider Ownership
64.2% of Two Harbors Investments shares are owned by institutional investors. 0.7% of Two Harbors Investments shares are owned by company insiders. Comparatively, 28.5% of Sunrise Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Two Harbors Investments and Sunrise Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Two Harbors Investments | -6.09% | 12.79% | 1.44% |
| Sunrise Realty Trust | 53.33% | 8.25% | 4.90% |
Risk & Volatility
Two Harbors Investments has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Valuation & Earnings
This table compares Two Harbors Investments and Sunrise Realty Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Two Harbors Investments | $366.65 million | 3.45 | -$454.30 million | ($0.74) | -16.25 |
| Sunrise Realty Trust | $21.57 million | 4.86 | $12.14 million | $0.97 | 7.99 |
Sunrise Realty Trust has lower revenue, but higher earnings than Two Harbors Investments. Two Harbors Investments 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.
Summary
Two Harbors Investments beats Sunrise Realty Trust on 9 of the 17 factors compared between the two stocks.
About Two Harbors Investments
Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. It qualifies as a REIT for federal income tax purposes. As a REIT, the company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in St. Louis Park, Minnesota.
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.
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