Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)
RITM
Rithm Capital Corp.
$9.55
+2.14%
REAL ESTATE · Cap: $5.51B
STWD
Starwood Property Trust Inc
$15.00
+0.40%
REAL ESTATE · Cap: $6.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 623% more annual revenue ($4.32B vs $597.28M). STWD leads profitability with a 38.2% profit margin vs 10.8%. RITM trades at a lower P/E of 16.4x. STWD earns a higher WallStSmart Score of 49/100 (D+).
RITM
Hold49
out of 100
Grade: D+
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.3%
Fair Value
$64.19
Current Price
$9.55
$54.64 discount
Margin of Safety
+84.7%
Fair Value
$118.26
Current Price
$15.00
$103.26 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
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Weak financial health signals
Earnings declined 93.2%
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : RITM
The strongest argument for RITM centers on Price/Book, P/E Ratio.
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, EPS Growth, Altman Z-Score. Debt-to-equity of 4.72 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 3.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
RITM profiles as a value stock while STWD is a mature play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.11 — expect wider price swings.
STWD is growing revenue faster at 13.4% — sustainability is the question.
RITM generates stronger free cash flow (172M), providing more financial flexibility.
Bottom Line
RITM scores higher overall (49/100 vs 49/100). STWD offers better value entry with a 84.7% 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.
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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