WallStSmart

Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rithm Capital Corp. generates 590% more annual revenue ($3.78B vs $547.93M). STWD leads profitability with a 75.1% profit margin vs 18.4%. RITM trades at a lower P/E of 8.4x. STWD earns a higher WallStSmart Score of 67/100 (B-).

RITM

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 5.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.24

STWD

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RITMSignificantly Overvalued (-51.3%)

Margin of Safety

-51.3%

Fair Value

$7.07

Current Price

$9.04

$1.97 premium

UndervaluedFair: $7.07Overvalued
STWDUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$53.82

Current Price

$17.39

$36.42 discount

UndervaluedFair: $53.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RITM2 strengths · Avg: 10.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

STWD5 strengths · Avg: 9.6/10
Price/BookValuation
0.9x10/10

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
14.8x8/10

Attractively priced relative to earnings

Areas to Watch

RITM4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.3%2/10

Revenue declined 8.3%

EPS GrowthGrowth
-81.0%2/10

Earnings declined 81.0%

Free Cash FlowQuality
$-116.15M2/10

Negative free cash flow — burning cash

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 : RITM

The strongest argument for RITM centers on P/E Ratio, Price/Book. Profitability is solid with margins at 18.4% and operating margin at 19.2%.

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 : RITM

The primary concerns for RITM are Piotroski F-Score, Revenue Growth, EPS Growth.

Bear Case : STWD

The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

RITM profiles as a declining stock while STWD is a growth play — different risk/reward profiles.

RITM carries more volatility with a beta of 1.20 — 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

STWD scores higher overall (67/100 vs 51/100), backed by strong 75.1% margins and 62.6% revenue growth. 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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