WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rithm Capital Corp. generates 674% more annual revenue ($4.24B vs $547.93M). STWD leads profitability with a 75.1% profit margin vs 17.0%. RITM trades at a lower P/E of 9.0x. STWD earns a higher WallStSmart Score of 69/100 (B-).

RITM

Strong Buy

69

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 8.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.24

STWD

Strong Buy

69

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

RITMUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$73.52

Current Price

$9.84

$63.68 discount

UndervaluedFair: $73.52Overvalued
STWDUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$114.02

Current Price

$17.75

$96.27 discount

UndervaluedFair: $114.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RITM4 strengths · Avg: 10.0/10
P/E RatioValuation
9.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
64.6%10/10

Revenue surging 64.6% year-over-year

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

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
15.7x8/10

Attractively priced relative to earnings

Areas to Watch

RITM2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.242/10

Distress zone — elevated risk

STWD3 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

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, Revenue Growth. Profitability is solid with margins at 17.0% and operating margin at 13.2%. Revenue growth of 64.6% 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 : RITM

The primary concerns for RITM are Piotroski F-Score, Altman Z-Score.

Bear Case : STWD

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

Key Dynamics to Monitor

RITM carries more volatility with a beta of 1.16 — expect wider price swings.

RITM is growing revenue faster at 64.6% — sustainability is the question.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RITM scores higher overall (69/100 vs 69/100), backed by strong 17.0% margins and 64.6% revenue growth. 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.

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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