Critical Analysis: Annaly Capital Management (NYSE:NLY) & Sunrise Realty Trust (NASDAQ:SUNS)

Annaly Capital Management (NYSE:NLY) and Sunrise Realty Trust (NASDAQ:SUNS) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Dividends

Annaly Capital Management pays an annual dividend of $2.60 per share and has a dividend yield of 13.2%. Sunrise Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 5.8%. Annaly Capital Management pays out -3,714.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

51.6% of Annaly Capital Management shares are owned by institutional investors. 0.2% of Annaly Capital Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Annaly Capital Management and Sunrise Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	2.59%	14.75%	1.57%
Sunrise Realty Trust	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Annaly Capital Management and Sunrise Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	0	2	8	0	2.80
Sunrise Realty Trust	0	0	1	0	3.00

Annaly Capital Management presently has a consensus target price of $21.33, suggesting a potential upside of 8.65%. Sunrise Realty Trust has a consensus target price of $17.50, suggesting a potential upside of 20.94%. Given Sunrise Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Sunrise Realty Trust is more favorable than Annaly Capital Management.

Earnings and Valuation

This table compares Annaly Capital Management and Sunrise Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	$320.33 million	34.36	-$1.64 billion	($0.07)	-280.50
Sunrise Realty Trust	$250,000.00	401.11	$230,000.00	N/A	N/A

Sunrise Realty Trust has lower revenue, but higher earnings than Annaly Capital Management.

Summary

Annaly Capital Management beats Sunrise Realty Trust on 9 of the 13 factors compared between the two stocks.

About Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was incorporated in 1996 and is based in New York, New York.

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.