Head to Head Comparison: Sunrise Realty Trust (NASDAQ:SUNS) and Adamas Trust (NASDAQ:ADAM)

Adamas Trust (NASDAQ:ADAM) and Sunrise Realty Trust (NASDAQ:SUNS) 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, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Adamas Trust and Sunrise Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adamas Trust	$601.95 million	1.35	$149.05 million	$1.68	5.36
Sunrise Realty Trust	$21.57 million	4.70	$12.14 million	$0.97	7.73

Adamas Trust has higher revenue and earnings than Sunrise Realty Trust. Adamas 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 Adamas Trust and Sunrise Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
Sunrise Realty Trust	53.33%	8.25%	4.90%

Analyst Recommendations

This is a summary of current ratings for Adamas Trust and Sunrise Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	4	1	1	2.50
Sunrise Realty Trust	1	2	0	0	1.67

Adamas Trust currently has a consensus target price of $9.50, suggesting a potential upside of 5.44%. Sunrise Realty Trust has a consensus target price of $8.00, suggesting a potential upside of 6.67%. Given Sunrise Realty Trust’s higher probable upside, analysts clearly believe Sunrise Realty Trust is more favorable than Adamas Trust.

Volatility and Risk

Adamas Trust has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

54.9% of Adamas Trust shares are held by institutional investors. 2.0% of Adamas Trust shares are held by company insiders. Comparatively, 28.5% of Sunrise Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 12.0%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 16.0%. Adamas Trust pays out 64.3% 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.

Summary

Adamas Trust beats Sunrise Realty Trust on 10 of the 17 factors compared between the two stocks.

About Adamas Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 incorporated in 2003 and is headquartered 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.