Redwood Trust Inc (RWT)vsStarwood Property Trust Inc (STWD)
RWT
Redwood Trust Inc
$5.46
+3.21%
REAL ESTATE · Cap: $661.19M
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 209% more annual revenue ($547.93M vs $177.37M). STWD leads profitability with a 75.1% profit margin vs -39.5%. RWT appears more attractively valued with a PEG of 1.47. STWD earns a higher WallStSmart Score of 67/100 (B-).
RWT
Buy59
out of 100
Grade: C
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RWT.
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 32.1%
Revenue surging 93.1% year-over-year
Reasonable price relative to book value
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
ROE of -6.4% — below average capital efficiency
Earnings declined 52.6%
Negative free cash flow — burning cash
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : RWT
The strongest argument for RWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 93.1% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
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 : RWT
The primary concerns for RWT are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 22.68 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
RWT profiles as a hypergrowth stock while STWD is a growth play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.59 — expect wider price swings.
RWT is growing revenue faster at 93.1% — sustainability is the question.
STWD generates stronger free cash flow (190M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (67/100 vs 59/100), 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.
Redwood Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.
Visit Website →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.
Compare with Other REIT - MORTGAGE Stocks
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