Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)
RITM
Rithm Capital Corp.
$10.19
+2.52%
REAL ESTATE · Cap: $5.52B
STWD
Starwood Property Trust Inc
$16.45
+3.26%
REAL ESTATE · Cap: $6.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 613% more annual revenue ($4.14B vs $580.84M). STWD leads profitability with a 60.5% profit margin vs 11.2%. RITM trades at a lower P/E of 9.1x. STWD earns a higher WallStSmart Score of 59/100 (C).
RITM
Hold45
out of 100
Grade: D
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.9%
Fair Value
$62.41
Current Price
$10.19
$52.22 discount
Margin of Safety
+84.5%
Fair Value
$116.56
Current Price
$16.45
$100.11 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
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
Revenue declined 10.0%
Earnings declined 93.2%
Distress zone — elevated risk
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.
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, Revenue Growth, EPS Growth. 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 profiles as a declining stock while STWD is a growth play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.13 — expect wider price swings.
STWD is growing revenue faster at 21.8% — sustainability is the question.
RITM generates stronger free cash flow (254M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (59/100 vs 45/100), backed by strong 60.5% margins and 21.8% revenue growth. RITM offers better value entry with a 82.9% margin of safety. Both earn "Buy" 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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