ARMOUR Residential REIT Inc (ARR)vsStarwood Property Trust Inc (STWD)
ARR
ARMOUR Residential REIT Inc
$16.32
-0.55%
REAL ESTATE · Cap: $2.37B
STWD
Starwood Property Trust Inc
$15.81
-0.82%
REAL ESTATE · Cap: $6.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 22% more annual revenue ($597.28M vs $490.69M). ARR leads profitability with a 87.8% profit margin vs 38.2%. STWD appears more attractively valued with a PEG of 1.74. ARR earns a higher WallStSmart Score of 80/100 (B+).
ARR
Strong Buy80
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 ARR.
Margin of Safety
+84.8%
Fair Value
$119.15
Current Price
$15.81
$103.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 88 of every $100 in revenue as profit
Strong operational efficiency at 87.0%
Revenue surging 126.1% year-over-year
Earnings expanding 23.1% YoY
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
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 : ARR
The strongest argument for ARR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 87.8% and operating margin at 87.0%. Revenue growth of 126.1% 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 : ARR
The primary concerns for ARR are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 7.54 is elevated, increasing financial risk.
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
ARR profiles as a growth stock while STWD is a mature play — different risk/reward profiles.
ARR carries more volatility with a beta of 1.34 — expect wider price swings.
ARR is growing revenue faster at 126.1% — sustainability is the question.
ARR generates stronger free cash flow (210M), providing more financial flexibility.
Bottom Line
ARR scores higher overall (80/100 vs 49/100), backed by strong 87.8% margins and 126.1% 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.
ARMOUR Residential REIT Inc
REAL ESTATE · REIT - MORTGAGE · USA
ARMOR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. The company is headquartered in Vero Beach, Florida.
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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