WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 299% more annual revenue ($580.84M vs $145.60M). ORC leads profitability with a 83.8% profit margin vs 60.5%. ORC trades at a lower P/E of 7.0x. ORC earns a higher WallStSmart Score of 68/100 (B-).

ORC

Strong Buy

68

out of 100

Grade: B-

Growth: 8.3Profit: 7.5Value: 6.7Quality: 3.8
Piotroski: 4/9

STWD

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ORC.

STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$117.88

Current Price

$17.05

$100.83 discount

UndervaluedFair: $117.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ORC6 strengths · Avg: 10.0/10
P/E RatioValuation
7.0x10/10

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

STWD4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.5%10/10

Keeps 61 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.8%8/10

Revenue surging 21.8% year-over-year

Areas to Watch

ORC2 concerns · Avg: 2.0/10
Market CapQuality
$1.32B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
8.061/10

Elevated debt levels

STWD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-60.4%2/10

Earnings declined 60.4%

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, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.

Bear Case : ORC

The primary concerns for ORC are Market Cap, Debt/Equity. Debt-to-equity of 8.06 is elevated, increasing financial risk.

Bear Case : STWD

The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

ORC carries more volatility with a beta of 1.55 — expect wider price swings.

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

ORC generates stronger free cash flow (49M), providing more financial flexibility.

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

Bottom Line

ORC scores higher overall (68/100 vs 59/100), backed by strong 83.8% margins and 1003.0% revenue growth. STWD offers better value entry with a 84.7% 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.

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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