WallStSmart

MFA Financial Inc (MFA)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 68% more annual revenue ($547.93M vs $325.40M). STWD leads profitability with a 75.1% profit margin vs 54.3%. MFA appears more attractively valued with a PEG of 2.48. STWD earns a higher WallStSmart Score of 67/100 (B-).

MFA

Strong Buy

67

out of 100

Grade: B-

Growth: 5.7Profit: 7.5Value: 8.0Quality: 5.3
Piotroski: 4/9

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

MFAOvervalued (-9.9%)

Margin of Safety

-9.9%

Fair Value

$8.84

Current Price

$9.85

$1.01 premium

UndervaluedFair: $8.84Overvalued
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

MFA5 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.3%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
61.7%10/10

Strong operational efficiency at 61.7%

Revenue GrowthGrowth
111.3%10/10

Revenue surging 111.3% year-over-year

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

MFA3 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$968.82M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

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 : MFA

The strongest argument for MFA centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.3% and operating margin at 61.7%. Revenue growth of 111.3% 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 : MFA

The primary concerns for MFA are PEG Ratio, Market Cap, EPS Growth.

Bear Case : STWD

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

Key Dynamics to Monitor

MFA carries more volatility with a beta of 1.64 — expect wider price swings.

MFA is growing revenue faster at 111.3% — 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

MFA scores higher overall (67/100 vs 67/100), backed by strong 54.3% margins and 111.3% 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.

MFA Financial Inc

REAL ESTATE · REIT - MORTGAGE · USA

MFA Financial, Inc., is a real estate investment trust (REIT) 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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