WallStSmart

Franklin BSP Realty Trust Inc (FBRT)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 104% more annual revenue ($597.28M vs $292.61M). STWD leads profitability with a 38.2% profit margin vs 21.4%. FBRT trades at a lower P/E of 19.5x. STWD earns a higher WallStSmart Score of 49/100 (D+).

FBRT

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 5.5Value: 4.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.35

STWD

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 6.7Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FBRTSignificantly Overvalued (-33.2%)

Margin of Safety

-33.2%

Fair Value

$7.62

Current Price

$7.78

$0.16 premium

UndervaluedFair: $7.62Overvalued
STWDUndervalued (+84.8%)

Margin of Safety

+84.8%

Fair Value

$118.70

Current Price

$15.62

$103.08 discount

UndervaluedFair: $118.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FBRT2 strengths · Avg: 9.5/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
21.4%9/10

Keeps 21 of every $100 in revenue as profit

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

FBRT4 concerns · Avg: 2.5/10
Market CapQuality
$695.09M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

EPS GrowthGrowth
-36.8%2/10

Earnings declined 36.8%

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

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

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

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 : FBRT

The strongest argument for FBRT centers on Price/Book, Profit Margin. Profitability is solid with margins at 21.4% and operating margin at 8.6%. Revenue growth of 14.2% 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 : FBRT

The primary concerns for FBRT are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 2.85 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

FBRT carries more volatility with a beta of 1.10 — expect wider price swings.

FBRT is growing revenue faster at 14.2% — sustainability is the question.

FBRT generates stronger free cash flow (48M), providing more financial flexibility.

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

Bottom Line

FBRT scores higher overall (49/100 vs 49/100), backed by strong 21.4% margins and 14.2% revenue growth. STWD offers better value entry with a 84.8% margin of safety. Both earn "Hold" 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.

Franklin BSP Realty Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Franklin BSP Realty Trust, Inc. is a real estate investment trust that originates, acquires and manages a portfolio of commercial real estate debt investments secured by properties located in the United States and internationally. The company is headquartered in New York, New York.

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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