WallStSmart

Orchid Island Capital Inc. (ORC)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 276% more annual revenue ($547.93M vs $145.60M). ORC leads profitability with a 83.8% profit margin vs 75.1%. ORC trades at a lower P/E of 7.3x. STWD earns a higher WallStSmart Score of 69/100 (B-).

ORC

Strong Buy

68

out of 100

Grade: B-

Growth: 8.3Profit: 7.5Value: 5.7Quality: 3.3
Piotroski: 3/9

STWD

Strong Buy

69

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

ORCSignificantly Overvalued (-50.9%)

Margin of Safety

-50.9%

Fair Value

$4.97

Current Price

$7.05

$2.08 premium

UndervaluedFair: $4.97Overvalued
STWDUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$114.02

Current Price

$17.75

$96.27 discount

UndervaluedFair: $114.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ORC6 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
83.8%10/10

Keeps 84 of every $100 in revenue as profit

Operating MarginProfitability
158.9%10/10

Strong operational efficiency at 158.9%

Revenue GrowthGrowth
1003.0%10/10

Revenue surging 1003.0% year-over-year

EPS GrowthGrowth
794.0%10/10

Earnings expanding 794.0% YoY

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
15.7x8/10

Attractively priced relative to earnings

Areas to Watch

ORC3 concerns · Avg: 2.3/10
Market CapQuality
$1.39B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
7.471/10

Elevated debt levels

STWD3 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ORC

The strongest argument for ORC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 83.8% and operating margin at 158.9%. Revenue growth of 1003.0% 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 PEG Ratio, Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

ORC carries more volatility with a beta of 1.58 — expect wider price swings.

ORC is growing revenue faster at 1003.0% — sustainability is the question.

STWD generates stronger free cash flow (283M), providing more financial flexibility.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

STWD scores higher overall (69/100 vs 68/100), backed by strong 75.1% margins and 62.6% revenue growth. 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.

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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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