Redwood Trust Inc (RWT)vsStarwood Property Trust Inc (STWD)
RWT
Redwood Trust Inc
$3.55
-2.20%
REAL ESTATE · Cap: $566.51M
STWD
Starwood Property Trust Inc
$15.62
0.00%
REAL ESTATE · Cap: $6.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 128% more annual revenue ($597.28M vs $261.57M). STWD leads profitability with a 38.2% profit margin vs 2.2%. RWT appears more attractively valued with a PEG of 1.47. STWD earns a higher WallStSmart Score of 49/100 (D+).
RWT
Hold43
out of 100
Grade: D
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.7%
Fair Value
$16.21
Current Price
$3.55
$12.66 discount
Margin of Safety
+84.8%
Fair Value
$118.70
Current Price
$15.62
$103.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Smaller company, higher risk/reward
ROE of 0.6% — below average capital efficiency
2.2% margin — thin
Operating margin of 0.1%
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 : RWT
The strongest argument for RWT centers on Price/Book. 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. Profitability is solid with margins at 38.2% and operating margin at -5.9%. Revenue growth of 13.4% demonstrates continued momentum.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 29.41 is elevated, increasing financial risk. Thin 2.2% margins leave little buffer for downturns.
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
RWT profiles as a value stock while STWD is a mature play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.43 — expect wider price swings.
STWD is growing revenue faster at 13.4% — sustainability is the question.
STWD generates stronger free cash flow (-141M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (49/100 vs 43/100), backed by strong 38.2% margins and 13.4% revenue growth. RWT offers better value entry with a 58.7% 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.
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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