Apollo Commercial Real Estate Finance Inc (ARI)vsStarwood Property Trust Inc (STWD)
ARI
Apollo Commercial Real Estate Finance Inc
$6.73
+0.60%
REAL ESTATE · Cap: $900.92M
STWD
Starwood Property Trust Inc
$16.66
+0.48%
REAL ESTATE · Cap: $6.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 116% more annual revenue ($580.84M vs $268.48M). STWD leads profitability with a 60.5% profit margin vs 47.3%. ARI appears more attractively valued with a PEG of 1.33. ARI earns a higher WallStSmart Score of 66/100 (B-).
ARI
Strong Buy66
out of 100
Grade: B-
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARI.
Margin of Safety
+84.6%
Fair Value
$116.99
Current Price
$16.66
$100.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 41.4%
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
Areas to Watch
0.2% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
ROE of 7.0% — below average capital efficiency
Expensive relative to growth rate
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 60.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARI
The strongest argument for ARI centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 47.3% and operating margin at 41.4%. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bull 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.
Bear Case : ARI
The primary concerns for ARI are Revenue Growth, EPS Growth, Market Cap. Debt-to-equity of 4.50 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
ARI profiles as a value stock while STWD is a growth play — different risk/reward profiles.
ARI carries more volatility with a beta of 1.41 — expect wider price swings.
STWD is growing revenue faster at 21.8% — sustainability is the question.
ARI generates stronger free cash flow (-271,000), providing more financial flexibility.
Bottom Line
ARI scores higher overall (66/100 vs 59/100), backed by strong 47.3% margins. STWD offers better value entry with a 84.6% margin of safety. 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.
Apollo Commercial Real Estate Finance Inc
REAL ESTATE · REIT - MORTGAGE · USA
Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust (REIT) that originates, acquires, invests, and manages commercial first mortgage loans, subordinated financings, and other real estate-related commercial debt investments in the United States. . The company is headquartered in New York, New York.
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.
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