Starwood Property Trust Inc (STWD)vsTwo Harbors Investments Corp (TWO)
STWD
Starwood Property Trust Inc
$16.45
+3.26%
REAL ESTATE · Cap: $6.08B
TWO
Two Harbors Investments Corp
$12.12
+0.75%
REAL ESTATE · Cap: $1.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Two Harbors Investments Corp generates 10% more annual revenue ($640.21M vs $580.84M). STWD leads profitability with a 60.5% profit margin vs -3.4%. STWD appears more attractively valued with a PEG of 1.74. STWD earns a higher WallStSmart Score of 59/100 (C).
STWD
Buy59
out of 100
Grade: C
TWO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.5%
Fair Value
$116.56
Current Price
$16.45
$100.11 discount
Intrinsic value data unavailable for TWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
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
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 60.4%
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, 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.
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, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 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 4.79 is elevated, increasing financial risk.
Key Dynamics to Monitor
STWD profiles as a growth 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 (56M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (59/100 vs 55/100), backed by strong 60.5% margins and 21.8% revenue growth. Both earn "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.
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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