Ellington Financial Inc. (EFC)vsStarwood Property Trust Inc (STWD)
EFC
Ellington Financial Inc.
$11.77
+2.26%
REAL ESTATE · Cap: $1.41B
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 66% more annual revenue ($547.93M vs $329.39M). STWD leads profitability with a 75.1% profit margin vs 44.6%. EFC appears more attractively valued with a PEG of 0.86. STWD earns a higher WallStSmart Score of 67/100 (B-).
EFC
Buy59
out of 100
Grade: C
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.2%
Fair Value
$8.09
Current Price
$11.77
$3.68 premium
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 32.1%
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Revenue declined 0.6%
Earnings declined 45.3%
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : EFC
The strongest argument for EFC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.6% and operating margin at 32.1%. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, Revenue Growth. Profitability is solid with margins at 75.1% and operating margin at 11.2%. Revenue growth of 62.6% demonstrates continued momentum.
Bear Case : EFC
The primary concerns for EFC are Market Cap, Piotroski F-Score, Revenue Growth. Debt-to-equity of 8.82 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
EFC profiles as a declining stock while STWD is a growth play — different risk/reward profiles.
STWD carries more volatility with a beta of 1.11 — expect wider price swings.
STWD is growing revenue faster at 62.6% — sustainability is the question.
EFC generates stronger free cash flow (778M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (67/100 vs 59/100), backed by strong 75.1% margins and 62.6% revenue growth. 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.
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