Sunrise Realty Trust (NASDAQ:SUNS) and City Office REIT (NYSE:CIO) Financial Review

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sunrise Realty Trust and City Office REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrise Realty Trust	0	0	1	0	3.00
City Office REIT	0	0	0	0	0.00

Sunrise Realty Trust currently has a consensus target price of $17.50, indicating a potential upside of 17.45%. Given Sunrise Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Sunrise Realty Trust is more favorable than City Office REIT.

Dividends

Sunrise Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 5.6%. City Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 7.6%. City Office REIT pays out -95.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

67.5% of City Office REIT shares are owned by institutional investors. 3.9% of City Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sunrise Realty Trust and City Office REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrise Realty Trust	$250,000.00	413.03	$230,000.00	N/A	N/A
City Office REIT	$179.10 million	1.19	-$2.68 million	($0.42)	-12.59

Sunrise Realty Trust has higher earnings, but lower revenue than City Office REIT.

Profitability

This table compares Sunrise Realty Trust and City Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunrise Realty Trust	N/A	N/A	N/A
City Office REIT	-5.56%	-1.48%	-0.65%

Summary

Sunrise Realty Trust beats City Office REIT on 8 of the 13 factors compared between the two stocks.

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 City Office REIT

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.7 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.