Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)
RITM
Rithm Capital Corp.
$9.14
-0.44%
REAL ESTATE · Cap: $5.20B
STWD
Starwood Property Trust Inc
$17.05
-0.23%
REAL ESTATE · Cap: $6.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 630% more annual revenue ($4.24B vs $580.84M). STWD leads profitability with a 60.5% profit margin vs 17.0%. RITM trades at a lower P/E of 8.5x. RITM earns a higher WallStSmart Score of 69/100 (B-).
RITM
Strong Buy69
out of 100
Grade: B-
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.5%
Fair Value
$64.81
Current Price
$9.14
$55.67 discount
Margin of Safety
+84.7%
Fair Value
$117.88
Current Price
$17.05
$100.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 64.6% year-over-year
Earnings expanding 72.2% YoY
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.8% year-over-year
Areas to Watch
Weak financial health signals
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 60.4%
Comparative Analysis Report
WallStSmart ResearchBull 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, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.
Bear Case : RITM
The primary concerns for RITM are Piotroski F-Score, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.62 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 3.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
RITM carries more volatility with a beta of 1.13 — expect wider price swings.
RITM is growing revenue faster at 64.6% — sustainability is the question.
RITM generates stronger free cash flow (254M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RITM scores higher overall (69/100 vs 59/100), backed by strong 17.0% margins and 64.6% revenue growth. STWD offers better value entry with a 84.7% 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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