Apollo Commercial Real Estate Finance Inc (ARI)vsStarwood Property Trust Inc (STWD)
ARI
Apollo Commercial Real Estate Finance Inc
$6.50
-0.15%
REAL ESTATE · Cap: $868.96M
STWD
Starwood Property Trust Inc
$14.98
-1.45%
REAL ESTATE · Cap: $6.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Apollo Commercial Real Estate Finance Inc generates 5% more annual revenue ($624.29M vs $597.28M). STWD leads profitability with a 38.2% profit margin vs 21.1%. ARI appears more attractively valued with a PEG of 1.33. ARI earns a higher WallStSmart Score of 75/100 (B).
ARI
Strong Buy75
out of 100
Grade: B
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARI.
Margin of Safety
+84.8%
Fair Value
$118.70
Current Price
$14.98
$103.72 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 91.2%
Revenue surging 525.0% year-over-year
Keeps 21 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Smaller company, higher risk/reward
Earnings declined 10.0%
Distress zone — elevated risk
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 : ARI
The strongest argument for ARI centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.1% and operating margin at 91.2%. Revenue growth of 525.0% demonstrates continued momentum.
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 : ARI
The primary concerns for ARI are Market Cap, EPS Growth, Altman Z-Score.
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
ARI profiles as a growth stock while STWD is a mature play — different risk/reward profiles.
ARI carries more volatility with a beta of 1.45 — expect wider price swings.
ARI is growing revenue faster at 525.0% — sustainability is the question.
ARI generates stronger free cash flow (21M), providing more financial flexibility.
Bottom Line
ARI scores higher overall (75/100 vs 49/100), backed by strong 21.1% margins and 525.0% revenue growth. STWD offers better value entry with a 84.8% margin of safety. 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.
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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