Apollo Commercial Real Estate Finance Inc (ARI)vsStarwood Property Trust Inc (STWD)
ARI
Apollo Commercial Real Estate Finance Inc
$11.00
+0.82%
REAL ESTATE · Cap: $1.45B
STWD
Starwood Property Trust Inc
$17.75
-1.66%
REAL ESTATE · Cap: $6.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 104% more annual revenue ($547.93M vs $268.48M). STWD leads profitability with a 75.1% profit margin vs 47.3%. ARI appears more attractively valued with a PEG of 1.33. STWD earns a higher WallStSmart Score of 69/100 (B-).
ARI
Buy62
out of 100
Grade: C+
STWD
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARI.
Margin of Safety
+84.2%
Fair Value
$114.02
Current Price
$17.75
$96.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 41.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
0.2% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
ROE of 6.9% — below average capital efficiency
Expensive relative to growth rate
ROE of 6.0% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ARI
The strongest argument for ARI centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 47.3% and operating margin at 41.4%. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, Revenue Growth. Profitability is solid with margins at 75.1% and operating margin at 11.2%. Revenue growth of 62.6% demonstrates continued momentum.
Bear Case : ARI
The primary concerns for ARI are Revenue Growth, EPS Growth, Market Cap.
Bear Case : STWD
The primary concerns for STWD are PEG Ratio, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
ARI profiles as a value stock while STWD is a growth play — different risk/reward profiles.
ARI carries more volatility with a beta of 1.42 — expect wider price swings.
STWD is growing revenue faster at 62.6% — sustainability is the question.
STWD generates stronger free cash flow (283M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (69/100 vs 62/100), backed by strong 75.1% margins and 62.6% revenue growth. Both earn "Strong 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.
Apollo Commercial Real Estate Finance Inc
REAL ESTATE · REIT - MORTGAGE · USA
Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust (REIT) that originates, acquires, invests, and manages commercial first mortgage loans, subordinated financings, and other real estate-related commercial debt investments in the United States. . The company is headquartered in New York, New York.
Visit Website →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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