Orchid Island Capital Inc. (ORC)vsStarwood Property Trust Inc (STWD)
ORC
Orchid Island Capital Inc.
$7.15
+2.88%
REAL ESTATE · Cap: $1.30B
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 205% more annual revenue ($547.93M vs $179.51M). ORC leads profitability with a 88.6% profit margin vs 75.1%. ORC trades at a lower P/E of 5.5x. ORC earns a higher WallStSmart Score of 73/100 (B).
ORC
Strong Buy73
out of 100
Grade: B
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.1%
Fair Value
$58.03
Current Price
$7.15
$50.88 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 89 of every $100 in revenue as profit
Strong operational efficiency at 94.7%
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
Smaller company, higher risk/reward
Weak financial health signals
Elevated debt levels
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ORC
The strongest argument for ORC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 88.6% and operating margin at 94.7%. Revenue growth of 10.0% 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 : ORC
The primary concerns for ORC are Market Cap, Piotroski F-Score, Debt/Equity. Debt-to-equity of 7.47 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
ORC profiles as a mature stock while STWD is a growth play — different risk/reward profiles.
ORC carries more volatility with a beta of 1.67 — 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
ORC scores higher overall (73/100 vs 67/100), backed by strong 88.6% margins and 10.0% 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.
Orchid Island Capital Inc.
REAL ESTATE · REIT - MORTGAGE · USA
Orchid Island Capital, Inc., a specialty finance company, invests in Residential Mortgage-Backed Securities (RMBS) in the United States. The company is headquartered in Vero Beach, Florida.
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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