Ready Capital Corp (RC) vs Sunrise Realty Trust, Inc. (SUNS)

Ready Capital Corp and Sunrise Realty Trust, Inc. are both Reit Mortgage companies. Ready Capital Corp is the larger, with a market value of $185.0M against $87.3M — 2.1× the size. Ready Capital Corp has negative trailing earnings, so its P/E is not meaningful; Sunrise Realty Trust, Inc. trades at 6.6×. Sunrise Realty Trust, Inc. grew revenue faster over the last twelve months: 44.3% against −43.0%. Sunrise Realty Trust, Inc. has the higher net margin (53.3% vs −134.1%) and the lower return on invested capital (5.33% vs 6.29%). Both pay a dividend; Sunrise Realty Trust, Inc. yields more (18.8% vs 3.64%). Across the 18 metrics below, Sunrise Realty Trust, Inc. leads on 10 and Ready Capital Corp on 8.

Valuation

Metric RC SUNS Reit Mortgage median
P/E n/m 6.59 7.10
P/S 0.43 3.49 1.77
P/B 0.15 0.47 0.55
Price to free cash flow 0.15 n/m 5.36
EV/EBITDA 6.39 5.89 28.29
EV/Sales 7.32 3.26 15.90
Earnings yield (315.45%) 15.18% 8.10%
Free cash flow yield 687.40% (0.77%) 13.00%

Profitability

Metric RC SUNS Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 101.42% 61.64% 35.40%
Net margin (134.14%) 53.33% 11.85%
Free cash flow margin 297.03% (2.69%) 26.68%
Return on equity (37.06%) 7.11% 4.81%
Return on assets (7.25%) 4.43% 0.62%
Return on invested capital 6.29% 5.33% 1.22%

Growth

Metric RC SUNS Reit Mortgage median
Revenue growth (TTM) (43.02%) 44.28% 4.70%
EPS growth (last fiscal year) 45.25% (7.00%) 45.25%
Revenue growth, 5-year CAGR 17.09% — 14.60%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric RC SUNS Reit Mortgage median
Debt to equity 2.29 0.00 3.30
Current ratio 1.91 0.06 1.00
Net debt to EBITDA 6.30 (0.49) 18.31

Dividend

Metric RC SUNS Reit Mortgage median
Dividend yield 3.64% 18.78% 17.34%
Payout ratio — 1.24 1.28

Size

Metric RC SUNS Reit Mortgage median
Market cap 185.01m 87.32m 479.53m

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