PennyMac Mortgage Investment Trust (PMT)vsStarwood Property Trust Inc (STWD)
PMT
PennyMac Mortgage Investment Trust
$9.01
+1.46%
REAL ESTATE · Cap: $812.73M
STWD
Starwood Property Trust Inc
$15.10
+0.67%
REAL ESTATE · Cap: $5.70B
Smart Verdict
WallStSmart Research — data-driven comparison
PennyMac Mortgage Investment Trust generates 15% more annual revenue ($684.41M vs $597.28M). STWD leads profitability with a 38.2% profit margin vs 24.3%. PMT appears more attractively valued with a PEG of 0.76. PMT earns a higher WallStSmart Score of 66/100 (B-).
PMT
Strong Buy66
out of 100
Grade: B-
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.6%
Fair Value
$55.24
Current Price
$9.01
$46.23 discount
Margin of Safety
+84.7%
Fair Value
$118.26
Current Price
$15.10
$103.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 24 of every $100 in revenue as profit
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Negative free cash flow — burning cash
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PMT
The strongest argument for PMT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 24.3% and operating margin at 10.9%. PEG of 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin. Profitability is solid with margins at 38.2% and operating margin at -5.9%. Revenue growth of 13.4% demonstrates continued momentum.
Bear Case : PMT
The primary concerns for PMT are Market Cap, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 12.37 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 3.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
PMT carries more volatility with a beta of 1.11 — expect wider price swings.
STWD is growing revenue faster at 13.4% — sustainability is the question.
STWD generates stronger free cash flow (-141M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PMT scores higher overall (66/100 vs 49/100), backed by strong 24.3% margins. STWD offers better value entry with a 84.7% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PennyMac Mortgage Investment Trust
REAL ESTATE · REIT - MORTGAGE · USA
PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in mortgage-related assets in the United States. The company is headquartered in Westlake Village, California.
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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