WallStSmart

Ellington Financial Inc. (EFC)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 45% more annual revenue ($580.84M vs $399.87M). STWD leads profitability with a 60.5% profit margin vs 53.4%. EFC appears more attractively valued with a PEG of 0.86. EFC earns a higher WallStSmart Score of 80/100 (B+).

EFC

Strong Buy

80

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 7.7Quality: 4.0
Piotroski: 3/9

STWD

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EFC.

STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$118.33

Current Price

$17.05

$101.28 discount

UndervaluedFair: $118.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EFC6 strengths · Avg: 10.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.4%10/10

Keeps 53 of every $100 in revenue as profit

Operating MarginProfitability
59.4%10/10

Strong operational efficiency at 59.4%

Revenue GrowthGrowth
76.5%10/10

Revenue surging 76.5% year-over-year

EPS GrowthGrowth
127.0%10/10

Earnings expanding 127.0% YoY

STWD4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.5%10/10

Keeps 61 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.8%8/10

Revenue surging 21.8% year-over-year

Areas to Watch

EFC3 concerns · Avg: 2.3/10
Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
9.211/10

Elevated debt levels

STWD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-60.4%2/10

Earnings declined 60.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : EFC

The strongest argument for EFC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.4% and operating margin at 59.4%. Revenue growth of 76.5% demonstrates continued momentum.

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 : EFC

The primary concerns for EFC are Market Cap, Piotroski F-Score, Debt/Equity. Debt-to-equity of 9.21 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

STWD carries more volatility with a beta of 1.03 — expect wider price swings.

EFC is growing revenue faster at 76.5% — sustainability is the question.

EFC generates stronger free cash flow (147M), providing more financial flexibility.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EFC scores higher overall (80/100 vs 59/100), backed by strong 53.4% margins and 76.5% revenue growth. STWD offers better value entry with a 84.7% 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.

Ellington Financial Inc.

REAL ESTATE · REIT - MORTGAGE · USA

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, business-related and other financial assets in the United States. The company is headquartered in Old Greenwich, Connecticut.

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.

Want to dig deeper into these stocks?