PennyMac Mortgage Investment Trust (PMT)vsStarwood Property Trust Inc (STWD)
PMT
PennyMac Mortgage Investment Trust
$11.00
-0.72%
REAL ESTATE · Cap: $966.20M
STWD
Starwood Property Trust Inc
$17.75
-1.66%
REAL ESTATE · Cap: $6.86B
Smart Verdict
WallStSmart Research — data-driven comparison
PennyMac Mortgage Investment Trust generates 38% more annual revenue ($758.84M vs $547.93M). STWD leads profitability with a 75.1% profit margin vs 18.8%. PMT appears more attractively valued with a PEG of 0.76. STWD earns a higher WallStSmart Score of 69/100 (B-).
PMT
Strong Buy69
out of 100
Grade: B-
STWD
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.9%
Fair Value
$72.35
Current Price
$11.00
$61.35 discount
Margin of Safety
+84.2%
Fair Value
$114.02
Current Price
$17.75
$96.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 32.7%
Growing faster than its price suggests
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
ROE of 7.6% — below average capital efficiency
Weak financial health signals
Revenue declined 56.6%
Expensive relative to growth rate
ROE of 6.0% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PMT
The strongest argument for PMT centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 18.8% and operating margin at 32.7%. 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, 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 : PMT
The primary concerns for PMT are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 10.12 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
PMT profiles as a declining stock while STWD is a growth play — different risk/reward profiles.
PMT carries more volatility with a beta of 1.18 — expect wider price swings.
STWD is growing revenue faster at 62.6% — sustainability is the question.
STWD generates stronger free cash flow (283M), providing more financial flexibility.
Bottom Line
PMT scores higher overall (69/100 vs 69/100), backed by strong 18.8% margins. STWD offers better value entry with a 84.2% 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.
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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