Nexpoint Real Estate Finance Inc (NREF)vsRithm Capital Corp. (RITM)
NREF
Nexpoint Real Estate Finance Inc
$14.97
-0.93%
REAL ESTATE · Cap: $359.56M
RITM
Rithm Capital Corp.
$9.45
+1.50%
REAL ESTATE · Cap: $5.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 2999% more annual revenue ($4.69B vs $151.29M). NREF leads profitability with a 66.6% profit margin vs 10.6%. NREF trades at a lower P/E of 6.8x. RITM earns a higher WallStSmart Score of 67/100 (B-).
NREF
Buy56
out of 100
Grade: C
RITM
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.6%
Fair Value
$36.87
Current Price
$14.97
$21.90 discount
Margin of Safety
+84.5%
Fair Value
$68.79
Current Price
$9.45
$59.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 67 of every $100 in revenue as profit
Strong operational efficiency at 63.3%
Every $100 of equity generates 27 in profit
Reasonable price relative to book value
Strong operational efficiency at 39.5%
Revenue surging 39.4% year-over-year
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Revenue declined 13.7%
Earnings declined 46.8%
Negative free cash flow — burning cash
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NREF
The strongest argument for NREF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 66.6% and operating margin at 63.3%.
Bull Case : RITM
The strongest argument for RITM centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 39.4% demonstrates continued momentum.
Bear Case : NREF
The primary concerns for NREF are Market Cap, Revenue Growth, EPS Growth. Debt-to-equity of 11.79 is elevated, increasing financial risk.
Bear Case : RITM
The primary concerns for RITM are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
NREF profiles as a declining stock while RITM is a growth play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.16 — expect wider price swings.
RITM is growing revenue faster at 39.4% — sustainability is the question.
RITM generates stronger free cash flow (172M), providing more financial flexibility.
Bottom Line
RITM scores higher overall (67/100 vs 56/100) and 39.4% revenue growth. NREF offers better value entry with a 59.6% margin of safety. 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.
Nexpoint Real Estate Finance Inc
REAL ESTATE · REIT - MORTGAGE · USA
NexPoint Real Estate Finance, Inc. is a real estate finance company in the United States. The company is headquartered in Dallas, Texas.
Visit Website →Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
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