Critical Survey: Sunrise Realty Trust (NASDAQ:SUNS) versus Service Properties Trust (NASDAQ:SVC)

Service Properties Trust (NASDAQ:SVC) and Sunrise Realty Trust (NASDAQ:SUNS) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Service Properties Trust	-12.87%	-22.67%	-3.37%
Sunrise Realty Trust	N/A	N/A	N/A

Insider and Institutional Ownership

77.6% of Service Properties Trust shares are held by institutional investors. 1.4% of Service Properties Trust shares are held by company insiders. Comparatively, 5.7% of Sunrise Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Service Properties Trust 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
Service Properties Trust	$1.88 billion	0.24	-$32.78 million	($1.47)	-1.82
Sunrise Realty Trust	$250,000.00	328.76	$230,000.00	N/A	N/A

Sunrise Realty Trust has lower revenue, but higher earnings than Service Properties Trust.

Analyst Ratings

This is a summary of current ratings and recommmendations for Service Properties Trust and Sunrise Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Properties Trust	1	0	1	0	2.00
Sunrise Realty Trust	0	0	2	1	3.33

Service Properties Trust presently has a consensus price target of $5.25, indicating a potential upside of 96.63%. Sunrise Realty Trust has a consensus price target of $14.25, indicating a potential upside of 20.15%. Given Service Properties Trust’s higher possible upside, research analysts plainly believe Service Properties Trust is more favorable than Sunrise Realty Trust.

Dividends

Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. Sunrise Realty Trust pays an annual dividend of $1.68 per share and has a dividend yield of 14.2%. Service Properties Trust pays out -2.7% of its earnings in the form of a dividend.

Summary

Sunrise Realty Trust beats Service Properties Trust on 10 of the 14 factors compared between the two stocks.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

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.