Sunrise Realty Trust (NASDAQ:SUNS) and ACRES Commercial Realty (NYSE:ACR) Head-To-Head Review

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

Institutional & Insider Ownership

40.0% of ACRES Commercial Realty shares are held by institutional investors. 28.5% of Sunrise Realty Trust shares are held by insiders. Comparatively, 4.6% of ACRES Commercial Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrise Realty Trust	1	2	0	0	1.67
ACRES Commercial Realty	2	0	2	0	2.00

Sunrise Realty Trust presently has a consensus price target of $8.00, indicating a potential upside of 6.81%. ACRES Commercial Realty has a consensus price target of $24.50, indicating a potential upside of 73.54%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, analysts plainly believe ACRES Commercial Realty is more favorable than Sunrise Realty Trust.

Earnings & Valuation

This table compares Sunrise Realty Trust and ACRES Commercial Realty”s top-line 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	4.69	$12.14 million	$0.97	7.72
ACRES Commercial Realty	$79.95 million	1.26	$21.32 million	($1.12)	-12.61

ACRES Commercial Realty has higher revenue and earnings than Sunrise Realty Trust. ACRES Commercial Realty 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.

Risk & Volatility

Sunrise Realty Trust has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrise Realty Trust	53.33%	8.24%	5.03%
ACRES Commercial Realty	22.62%	2.42%	0.58%

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.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.