Ares Commercial Real Estate Corporation (ACRE) vs Sunrise Realty Trust, Inc. (SUNS)

Ares Commercial Real Estate Corporation and Sunrise Realty Trust, Inc. are both Reit Mortgage companies. Ares Commercial Real Estate Corporation is the larger, with a market value of $188.6M against $90.3M — 2.1× the size. Ares Commercial Real Estate Corporation has negative trailing earnings, so its P/E is not meaningful; Sunrise Realty Trust, Inc. trades at 6.9×. Sunrise Realty Trust, Inc. grew revenue faster over the last twelve months: 44.3% against −10.6%. Sunrise Realty Trust, Inc. has the higher net margin (53.3% vs −8.04%) and the higher return on invested capital (5.33% vs 0.65%). Both pay a dividend; Sunrise Realty Trust, Inc. yields more (18.0% vs 17.6%). Across the 18 metrics below, Sunrise Realty Trust, Inc. leads on 13 and Ares Commercial Real Estate Corporation on 5.

Valuation

Metric ACRE SUNS Reit Mortgage median
P/E n/m 6.87 14.55
P/S 3.42 3.64 1.72
P/B 0.39 0.49 0.52
Price to free cash flow 10.49 n/m 4.35
EV/EBITDA 63.42 6.15 28.27
EV/Sales 26.16 3.41 15.73
Earnings yield (2.35%) 14.56% 0.23%
Free cash flow yield 9.53% (0.74%) 13.86%

Profitability

Metric ACRE SUNS Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 31.94% 61.64% 31.94%
Net margin (8.04%) 53.33% (1.81%)
Free cash flow margin 32.64% (2.69%) 27.05%
Return on equity (0.88%) 7.11% (0.49%)
Return on assets (0.27%) 4.43% (0.06%)
Return on invested capital 0.65% 5.33% 0.79%

Growth

Metric ACRE SUNS Reit Mortgage median
Revenue growth (TTM) (10.60%) 44.28% 1.39%
EPS growth (last fiscal year) 96.88% (7.00%) 45.25%
Revenue growth, 5-year CAGR (7.89%) — 14.60%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ACRE SUNS Reit Mortgage median
Debt to equity 2.58 0.00 2.91
Current ratio 0.00 0.06 0.82
Net debt to EBITDA 44.04 (0.49) 18.31

Dividend

Metric ACRE SUNS Reit Mortgage median
Dividend yield 17.60% 18.02% 17.37%
Payout ratio — 1.24 1.87

Size

Metric ACRE SUNS Reit Mortgage median
Market cap 188.64m 90.29m 409.49m

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