ARMOUR Residential REIT Inc (ARR)vsStarwood Property Trust Inc (STWD)
ARR
ARMOUR Residential REIT Inc
$16.39
+2.50%
REAL ESTATE · Cap: $2.01B
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 45% more annual revenue ($547.93M vs $377.44M). ARR leads profitability with a 85.5% profit margin vs 75.1%. STWD appears more attractively valued with a PEG of 2.73. ARR earns a higher WallStSmart Score of 78/100 (B+).
ARR
Strong Buy78
out of 100
Grade: B+
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.8%
Fair Value
$144.41
Current Price
$16.39
$128.02 discount
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 86 of every $100 in revenue as profit
Strong operational efficiency at 93.8%
Revenue surging 126.1% year-over-year
Earnings expanding 23.1% YoY
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
Expensive relative to growth rate
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ARR
The strongest argument for ARR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 85.5% and operating margin at 93.8%. Revenue growth of 126.1% demonstrates continued momentum.
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 : ARR
The primary concerns for ARR are PEG Ratio.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
ARR carries more volatility with a beta of 1.42 — expect wider price swings.
ARR is growing revenue faster at 126.1% — sustainability is the question.
STWD generates stronger free cash flow (190M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARR scores higher overall (78/100 vs 67/100), backed by strong 85.5% margins and 126.1% revenue growth. STWD offers better value entry with a 66.4% margin of safety. Both earn "Strong Buy" and "Strong 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.
ARMOUR Residential REIT Inc
REAL ESTATE · REIT - MORTGAGE · USA
ARMOR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. The company is headquartered in Vero Beach, Florida.
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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