WallStSmart

Lument Finance Trust Inc (LFT)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 2424% more annual revenue ($547.93M vs $21.71M). STWD leads profitability with a 75.1% profit margin vs 45.2%. LFT trades at a lower P/E of 13.8x. STWD earns a higher WallStSmart Score of 67/100 (B-).

LFT

Hold

49

out of 100

Grade: D+

Growth: 3.0Profit: 7.0Value: 5.7Quality: 5.3
Piotroski: 2/9

STWD

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 6.0Value: 7.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LFTSignificantly Overvalued (-92.7%)

Margin of Safety

-92.7%

Fair Value

$0.68

Current Price

$1.24

$0.56 premium

UndervaluedFair: $0.68Overvalued
STWDUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$53.82

Current Price

$17.48

$36.34 discount

UndervaluedFair: $53.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LFT4 strengths · Avg: 9.5/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
45.2%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
39.6%10/10

Strong operational efficiency at 39.6%

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

STWD5 strengths · Avg: 9.6/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
75.1%10/10

Keeps 75 of every $100 in revenue as profit

Revenue GrowthGrowth
62.6%10/10

Revenue surging 62.6% year-over-year

EPS GrowthGrowth
78.0%10/10

Earnings expanding 78.0% YoY

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Areas to Watch

LFT4 concerns · Avg: 2.8/10
Market CapQuality
$72.26M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-44.4%2/10

Revenue declined 44.4%

STWD3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : LFT

The strongest argument for LFT centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 45.2% and operating margin at 39.6%.

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 : LFT

The primary concerns for LFT are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.12 is elevated, increasing financial risk.

Bear Case : STWD

The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

STWD carries more volatility with a beta of 1.11 — expect wider price swings.

STWD is growing revenue faster at 62.6% — sustainability is the question.

STWD generates stronger free cash flow (190M), providing more financial flexibility.

Bottom Line

STWD scores higher overall (67/100 vs 49/100), backed by strong 75.1% margins and 62.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Lument Finance Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing, financing and managing a portfolio of commercial real estate debt investments in the United States. The company is headquartered in New York, 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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