Starwood Property Trust Inc (STWD)vsTwo Harbors Investments Corp (TWO)
STWD
Starwood Property Trust Inc
$15.10
+0.67%
REAL ESTATE · Cap: $5.70B
TWO
Two Harbors Investments Corp
$12.18
0.00%
REAL ESTATE · Cap: $1.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Two Harbors Investments Corp generates 7% more annual revenue ($640.21M vs $597.28M). STWD leads profitability with a 38.2% profit margin vs -3.4%. STWD appears more attractively valued with a PEG of 1.74. TWO earns a higher WallStSmart Score of 53/100 (C-).
STWD
Hold49
out of 100
Grade: D+
TWO
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.7%
Fair Value
$118.26
Current Price
$15.10
$103.16 discount
Intrinsic value data unavailable for TWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 48.1%
Revenue surging 620.0% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
ROE of -19.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TWO
The strongest argument for TWO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 620.0% demonstrates continued momentum.
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.
Bear Case : TWO
The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.79 is elevated, increasing financial risk.
Key Dynamics to Monitor
STWD profiles as a mature stock while TWO is a hypergrowth play — different risk/reward profiles.
TWO carries more volatility with a beta of 1.05 — expect wider price swings.
TWO is growing revenue faster at 620.0% — sustainability is the question.
TWO generates stronger free cash flow (191M), providing more financial flexibility.
Bottom Line
TWO scores higher overall (53/100 vs 49/100) and 620.0% revenue growth. STWD offers better value entry with a 84.7% 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.
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.
Two Harbors Investments Corp
REAL ESTATE · REIT - MORTGAGE · USA
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.
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