WallStSmart

Arbor Realty Trust (ABR)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 10% more annual revenue ($580.84M vs $530.42M). STWD leads profitability with a 60.5% profit margin vs 22.4%. ABR appears more attractively valued with a PEG of 1.65. STWD earns a higher WallStSmart Score of 59/100 (C).

ABR

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 7.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.06

STWD

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABRUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$44.70

Current Price

$5.25

$39.45 discount

UndervaluedFair: $44.70Overvalued
STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$118.33

Current Price

$17.05

$101.28 discount

UndervaluedFair: $118.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABR3 strengths · Avg: 9.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
22.4%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

STWD4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.5%10/10

Keeps 61 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.8%8/10

Revenue surging 21.8% year-over-year

Areas to Watch

ABR4 concerns · Avg: 3.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Market CapQuality
$1.20B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Revenue GrowthGrowth
-10.3%2/10

Revenue declined 10.3%

STWD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-60.4%2/10

Earnings declined 60.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : ABR

The strongest argument for ABR centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 22.4% and operating margin at 18.8%.

Bull Case : STWD

The strongest argument for STWD centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.

Bear Case : ABR

The primary concerns for ABR are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 3.96 is elevated, increasing financial risk.

Bear Case : STWD

The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

ABR profiles as a declining stock while STWD is a growth play — different risk/reward profiles.

ABR carries more volatility with a beta of 1.21 — expect wider price swings.

STWD is growing revenue faster at 21.8% — sustainability is the question.

ABR generates stronger free cash flow (-24M), providing more financial flexibility.

Bottom Line

STWD scores higher overall (59/100 vs 53/100), backed by strong 60.5% margins and 21.8% revenue growth. ABR offers better value entry with a 83.0% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arbor Realty Trust

REAL ESTATE · REIT - MORTGAGE · USA

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured financial assets in the commercial, single-family, and multi-family real estate markets in the United States. The company is headquartered in Uniondale, New York.

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Starwood Property Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Starwood Property Trust, Inc. is a real estate investment trust (REIT) in the United States and Europe. The company is headquartered in Greenwich, Connecticut.

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