Ares Commercial Real Estate (NYSE:ACRE – Get Free Report) and Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations for Ares Commercial Real Estate and Sunrise Realty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ares Commercial Real Estate | 2 | 4 | 1 | 0 | 1.86 |
| Sunrise Realty Trust | 1 | 3 | 0 | 0 | 1.75 |
Ares Commercial Real Estate currently has a consensus target price of $5.00, suggesting a potential upside of 42.65%. Sunrise Realty Trust has a consensus target price of $6.50, suggesting a potential upside of 2.36%. Given Ares Commercial Real Estate’s stronger consensus rating and higher probable upside, research analysts clearly believe Ares Commercial Real Estate is more favorable than Sunrise Realty Trust.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Ares Commercial Real Estate | -8.04% | 4.08% | 1.23% |
| Sunrise Realty Trust | 53.33% | 8.25% | 4.90% |
Institutional and Insider Ownership
41.3% of Ares Commercial Real Estate shares are held by institutional investors. 2.3% of Ares Commercial Real Estate shares are held by insiders. Comparatively, 28.5% of Sunrise Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Ares Commercial Real Estate pays an annual dividend of $0.60 per share and has a dividend yield of 17.1%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 18.9%. Ares Commercial Real Estate pays out -750.0% 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.
Risk & Volatility
Ares Commercial Real Estate has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Valuation & Earnings
This table compares Ares Commercial Real Estate and Sunrise Realty Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ares Commercial Real Estate | $54.83 million | 3.55 | -$900,000.00 | ($0.08) | -43.81 |
| Sunrise Realty Trust | $21.57 million | 3.98 | $12.14 million | $0.97 | 6.55 |
Sunrise Realty Trust has lower revenue, but higher earnings than Ares Commercial Real Estate. Ares Commercial Real Estate 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
Sunrise Realty Trust beats Ares Commercial Real Estate on 9 of the 16 factors compared between the two stocks.
About Ares Commercial Real Estate
Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.
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.
Receive News & Ratings for Ares Commercial Real Estate Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ares Commercial Real Estate and related companies with MarketBeat.com's FREE daily email newsletter.
