Newmark Group (NASDAQ:NMRK – Get Free Report) and Sunrise Realty Trust (NASDAQ:SUNS – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Analyst Ratings
This is a summary of current ratings for Newmark Group and Sunrise Realty Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newmark Group | 0 | 2 | 6 | 0 | 2.75 |
| Sunrise Realty Trust | 2 | 1 | 1 | 0 | 1.75 |
Newmark Group presently has a consensus price target of $17.80, indicating a potential upside of 13.59%. Sunrise Realty Trust has a consensus price target of $10.38, indicating a potential upside of 34.57%. Given Sunrise Realty Trust’s higher possible upside, analysts plainly believe Sunrise Realty Trust is more favorable than Newmark Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newmark Group | $3.29 billion | 0.88 | $126.19 million | $0.68 | 23.04 |
| Sunrise Realty Trust | $21.57 million | 4.83 | $12.14 million | $0.94 | 8.20 |
Newmark Group has higher revenue and earnings than Sunrise Realty Trust. Sunrise Realty Trust is trading at a lower price-to-earnings ratio than Newmark Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Newmark Group and Sunrise Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newmark Group | 3.83% | 24.97% | 7.74% |
| Sunrise Realty Trust | 56.29% | 7.70% | 5.35% |
Institutional and Insider Ownership
58.4% of Newmark Group shares are held by institutional investors. 3.1% of Newmark Group shares are held by company insiders. Comparatively, 24.8% of Sunrise Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
Newmark Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Sunrise Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.6%. Newmark Group pays out 17.6% of its earnings in the form of a dividend. Sunrise Realty Trust pays out 127.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Newmark Group has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Sunrise Realty Trust has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Summary
Newmark Group beats Sunrise Realty Trust on 10 of the 16 factors compared between the two stocks.
About Newmark Group
Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc.operates is a subsidiary of Cantor Fitzgerald, L.P.
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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