WallStSmart

Seven Hills Realty Trust (SEVN)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 1778% more annual revenue ($547.93M vs $29.18M). STWD leads profitability with a 75.1% profit margin vs 52.9%. SEVN trades at a lower P/E of 8.2x. STWD earns a higher WallStSmart Score of 67/100 (B-).

SEVN

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 7.0Value: 5.7Quality: 4.5
Piotroski: 2/9Altman Z: 0.19

STWD

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 6.0Value: 7.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SEVNSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$6.87

Current Price

$8.31

$1.44 premium

UndervaluedFair: $6.87Overvalued
STWDUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$53.82

Current Price

$17.48

$36.34 discount

UndervaluedFair: $53.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SEVN4 strengths · Avg: 10.0/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
52.9%10/10

Keeps 53 of every $100 in revenue as profit

Operating MarginProfitability
60.8%10/10

Strong operational efficiency at 60.8%

STWD5 strengths · Avg: 9.6/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
75.1%10/10

Keeps 75 of every $100 in revenue as profit

Revenue GrowthGrowth
62.6%10/10

Revenue surging 62.6% year-over-year

EPS GrowthGrowth
78.0%10/10

Earnings expanding 78.0% YoY

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Areas to Watch

SEVN4 concerns · Avg: 3.0/10
Market CapQuality
$185.99M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

Debt/EquityHealth
1.483/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

STWD3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SEVN

The strongest argument for SEVN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 52.9% and operating margin at 60.8%.

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 : SEVN

The primary concerns for SEVN are Market Cap, Return on Equity, Debt/Equity.

Bear Case : STWD

The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

SEVN profiles as a declining stock while STWD is a growth play — different risk/reward profiles.

STWD carries more volatility with a beta of 1.11 — expect wider price swings.

STWD is growing revenue faster at 62.6% — sustainability is the question.

STWD generates stronger free cash flow (190M), providing more financial flexibility.

Bottom Line

STWD scores higher overall (67/100 vs 49/100), backed by strong 75.1% margins and 62.6% revenue growth. Both earn "Strong 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.

Seven Hills Realty Trust

REAL ESTATE · REIT - MORTGAGE · USA

Seven Hills Realty Trust is a focused real estate investment trust (REIT) that targets investments in a diversified portfolio of high-quality commercial properties, with a strong emphasis on the healthcare sector. The Trust is dedicated to acquiring and managing skilled nursing facilities and senior living communities, aligning its strategy with the increasing demand for healthcare services stemming from an aging population. Through disciplined investment approaches and a commitment to operational excellence, Seven Hills Realty Trust aims to deliver sustainable, risk-adjusted returns to shareholders while fostering robust relationships with its tenants in a rapidly evolving market landscape.

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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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