WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 38% more annual revenue ($597.28M vs $431.35M). EFC leads profitability with a 51.5% profit margin vs 38.2%. EFC appears more attractively valued with a PEG of 0.86. EFC earns a higher WallStSmart Score of 70/100 (B-).

EFC

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 7.7Quality: 4.8
Piotroski: 2/9

STWD

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EFC.

STWDUndervalued (+84.9%)

Margin of Safety

+84.9%

Fair Value

$119.59

Current Price

$16.30

$103.29 discount

UndervaluedFair: $119.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EFC6 strengths · Avg: 9.7/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
51.5%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
55.9%10/10

Strong operational efficiency at 55.9%

Revenue GrowthGrowth
33.8%10/10

Revenue surging 33.8% year-over-year

PEG RatioValuation
0.868/10

Growing faster than its price suggests

STWD2 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.2%10/10

Keeps 38 of every $100 in revenue as profit

Areas to Watch

EFC3 concerns · Avg: 2.7/10
Market CapQuality
$1.80B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

STWD4 concerns · Avg: 3.5/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

P/E RatioValuation
27.6x4/10

Moderate valuation

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

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 51.5% and operating margin at 55.9%. Revenue growth of 33.8% 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 : EFC

The primary concerns for EFC are Market Cap, Piotroski F-Score, EPS Growth.

Bear Case : STWD

The primary concerns for STWD are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

EFC profiles as a growth stock while STWD is a mature play — different risk/reward profiles.

STWD carries more volatility with a beta of 1.04 — expect wider price swings.

EFC is growing revenue faster at 33.8% — sustainability is the question.

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

Bottom Line

EFC scores higher overall (70/100 vs 49/100), backed by strong 51.5% margins and 33.8% revenue growth. STWD offers better value entry with a 84.9% 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.

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?