Head-To-Head Contrast: Arbor Realty Trust (NYSE:ABR) vs. Sunrise Realty Trust (NASDAQ:SUNS)
by Danessa Lincoln · The Markets DailyArbor Realty Trust (NYSE:ABR – Get Free Report) and Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.
Institutional and Insider Ownership
57.3% of Arbor Realty Trust shares are owned by institutional investors. 4.2% of Arbor Realty Trust shares are owned by insiders. Comparatively, 28.5% of Sunrise Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and target prices for Arbor Realty Trust and Sunrise Realty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arbor Realty Trust | 4 | 2 | 0 | 0 | 1.33 |
| Sunrise Realty Trust | 1 | 3 | 0 | 0 | 1.75 |
Arbor Realty Trust currently has a consensus target price of $5.12, suggesting a potential upside of 188.73%. Sunrise Realty Trust has a consensus target price of $6.50, suggesting a potential downside of 3.70%. Given Arbor Realty Trust’s higher possible upside, analysts plainly believe Arbor Realty Trust is more favorable than Sunrise Realty Trust.
Dividends
Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 38.3%. Sunrise Realty Trust pays an annual dividend of $1.29 per share and has a dividend yield of 19.1%. Arbor Realty Trust pays out -106.2% of its earnings in the form of a dividend. 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. Arbor Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Arbor Realty Trust has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Valuation & Earnings
This table compares Arbor Realty Trust and Sunrise Realty Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arbor Realty Trust | $940.01 million | 0.35 | $148.80 million | ($0.64) | -2.77 |
| Sunrise Realty Trust | $21.57 million | 4.23 | $12.14 million | $0.97 | 6.96 |
Arbor Realty Trust has higher revenue and earnings than Sunrise Realty Trust. Arbor 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.
Profitability
This table compares Arbor Realty Trust and Sunrise Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arbor Realty Trust | -7.96% | 3.98% | 0.62% |
| Sunrise Realty Trust | 53.33% | 8.25% | 4.90% |
Summary
Sunrise Realty Trust beats Arbor Realty Trust on 8 of the 15 factors compared between the two stocks.
About Arbor Realty Trust
Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, 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.