Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)
RITM
Rithm Capital Corp.
$9.23
-2.33%
REAL ESTATE · Cap: $5.18B
STWD
Starwood Property Trust Inc
$12.05
-6.44%
REAL ESTATE · Cap: $4.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 685% more annual revenue ($4.69B vs $597.28M). STWD leads profitability with a 38.2% profit margin vs 10.6%. RITM trades at a lower P/E of 14.7x. RITM earns a higher WallStSmart Score of 67/100 (B-).
RITM
Strong Buy67
out of 100
Grade: B-
STWD
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.4%
Fair Value
$68.49
Current Price
$9.23
$59.26 discount
Margin of Safety
+84.6%
Fair Value
$116.94
Current Price
$12.05
$104.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 39.5%
Revenue surging 39.4% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 97.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : RITM
The strongest argument for RITM centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 39.4% demonstrates continued momentum.
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 : RITM
The primary concerns for RITM are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.90 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 3.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
RITM profiles as a growth stock while STWD is a mature play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.16 — expect wider price swings.
RITM is growing revenue faster at 39.4% — sustainability is the question.
STWD generates stronger free cash flow (-141M), providing more financial flexibility.
Bottom Line
RITM scores higher overall (67/100 vs 52/100) and 39.4% revenue growth. STWD offers better value entry with a 84.6% 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.
Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
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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