Kennedy-Wilson (NYSE:KW – Get Free Report) and Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Institutional and Insider Ownership
87.7% of Kennedy-Wilson shares are held by institutional investors. 20.3% of Kennedy-Wilson shares are held by insiders. Comparatively, 24.8% of Sunrise Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Kennedy-Wilson pays an annual dividend of $0.48 per share and has a dividend yield of 6.6%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 12.3%. Kennedy-Wilson pays out -45.7% of its earnings in the form of a dividend. Sunrise Realty Trust pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kennedy-Wilson | 0 | 2 | 0 | 0 | 2.00 |
| Sunrise Realty Trust | 0 | 0 | 3 | 1 | 3.25 |
Kennedy-Wilson presently has a consensus target price of $11.00, indicating a potential upside of 51.18%. Sunrise Realty Trust has a consensus target price of $13.25, indicating a potential upside of 35.62%. Given Kennedy-Wilson’s higher possible upside, equities analysts clearly believe Kennedy-Wilson is more favorable than Sunrise Realty Trust.
Earnings and Valuation
This table compares Kennedy-Wilson and Sunrise Realty Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kennedy-Wilson | $531.40 million | 1.89 | -$33.00 million | ($1.05) | -6.93 |
| Sunrise Realty Trust | $10.63 million | 12.33 | $6.87 million | $1.01 | 9.67 |
Sunrise Realty Trust has lower revenue, but higher earnings than Kennedy-Wilson. Kennedy-Wilson 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 Kennedy-Wilson and Sunrise Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kennedy-Wilson | -19.24% | 7.76% | 0.92% |
| Sunrise Realty Trust | 62.04% | 7.41% | 4.43% |
Summary
Sunrise Realty Trust beats Kennedy-Wilson on 11 of the 16 factors compared between the two stocks.
About Kennedy-Wilson
Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.
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.
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