WallStSmart

PennyMac Mortgage Investment Trust (PMT)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PennyMac Mortgage Investment Trust generates 32% more annual revenue ($721.17M vs $547.93M). STWD leads profitability with a 75.1% profit margin vs 17.7%. PMT appears more attractively valued with a PEG of 2.12. PMT earns a higher WallStSmart Score of 71/100 (B).

PMT

Strong Buy

71

out of 100

Grade: B

Growth: 6.3Profit: 6.0Value: 10.0Quality: 3.3
Piotroski: 3/9

STWD

Strong Buy

67

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

PMTUndervalued (+63.3%)

Margin of Safety

+63.3%

Fair Value

$33.66

Current Price

$11.42

$22.24 discount

UndervaluedFair: $33.66Overvalued
STWDUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$53.82

Current Price

$17.48

$36.34 discount

UndervaluedFair: $53.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PMT3 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.1%8/10

Strong operational efficiency at 21.1%

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
15.1x8/10

Attractively priced relative to earnings

Areas to Watch

PMT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Market CapQuality
$976.33M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

STWD3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PMT

The strongest argument for PMT centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 21.1%. Revenue growth of 10.7% 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 : PMT

The primary concerns for PMT are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 10.12 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

PMT profiles as a mature stock while STWD is a growth play — different risk/reward profiles.

PMT carries more volatility with a beta of 1.24 — 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

PMT scores higher overall (71/100 vs 67/100), backed by strong 17.7% margins and 10.7% 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.

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.

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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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