Financial Survey: Sunrise Realty Trust (NASDAQ:SUNS) versus Sotherly Hotels (NASDAQ:SOHO)

Sotherly Hotels (NASDAQ:SOHO) 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 analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sotherly Hotels	1.88%	6.82%	0.84%
Sunrise Realty Trust	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Sotherly Hotels and Sunrise Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sotherly Hotels	0	1	0	0	2.00
Sunrise Realty Trust	0	0	1	0	3.00

Sotherly Hotels currently has a consensus price target of $1.50, indicating a potential upside of 9.49%. Sunrise Realty Trust has a consensus price target of $17.50, indicating a potential upside of 24.47%. Given Sunrise Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Sunrise Realty Trust is more favorable than Sotherly Hotels.

Earnings & Valuation

This table compares Sotherly Hotels and Sunrise Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sotherly Hotels	$173.84 million	0.16	$3.94 million	($0.24)	-5.71
Sunrise Realty Trust	$15.71 million	6.20	$230,000.00	N/A	N/A

Sotherly Hotels has higher revenue and earnings than Sunrise Realty Trust.

Insider and Institutional Ownership

27.5% of Sotherly Hotels shares are owned by institutional investors. 15.9% of Sotherly Hotels shares are owned by company insiders. Comparatively, 5.7% of Sunrise Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sotherly Hotels beats Sunrise Realty Trust on 7 of the 11 factors compared between the two stocks.

About Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.

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.