Rithm Capital Corp. (RITM)vsRedwood Trust Inc (RWT)
RITM
Rithm Capital Corp.
$9.27
-1.28%
REAL ESTATE · Cap: $4.84B
RWT
Redwood Trust Inc
$3.26
+0.62%
REAL ESTATE · Cap: $405.73M
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 1550% more annual revenue ($4.32B vs $261.57M). RITM leads profitability with a 10.8% profit margin vs 2.2%. RITM earns a higher WallStSmart Score of 49/100 (D+).
RITM
Hold49
out of 100
Grade: D+
RWT
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.1%
Fair Value
$63.34
Current Price
$9.27
$54.07 discount
Margin of Safety
+58.0%
Fair Value
$15.96
Current Price
$3.26
$12.70 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Earnings declined 93.2%
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 0.6% — below average capital efficiency
2.2% margin — thin
Operating margin of 0.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : RITM
The strongest argument for RITM centers on Price/Book, P/E Ratio.
Bull Case : RWT
The strongest argument for RWT centers on Price/Book. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : RITM
The primary concerns for RITM are Piotroski F-Score, EPS Growth, Altman Z-Score.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 29.41 is elevated, increasing financial risk. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
RWT carries more volatility with a beta of 1.51 — expect wider price swings.
RITM is growing revenue faster at 9.7% — sustainability is the question.
RITM generates stronger free cash flow (172M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RITM scores higher overall (49/100 vs 46/100). RWT offers better value entry with a 58.0% margin of safety. Both earn "Hold" 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.
Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
Redwood Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.
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