WallStSmart

MFA Financial Inc (MFA)vsRithm Capital Corp. (RITM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rithm Capital Corp. generates 1325% more annual revenue ($4.32B vs $302.83M). MFA leads profitability with a 48.9% profit margin vs 10.8%. MFA trades at a lower P/E of 6.4x. MFA earns a higher WallStSmart Score of 75/100 (B).

MFA

Strong Buy

75

out of 100

Grade: B

Growth: 7.7Profit: 7.5Value: 8.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.16

RITM

Hold

49

out of 100

Grade: D+

Growth: 6.0Profit: 5.5Value: 7.7Quality: 3.5
Piotroski: 2/9Altman Z: 0.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MFAUndervalued (+49.2%)

Margin of Safety

+49.2%

Fair Value

$19.15

Current Price

$6.79

$12.36 discount

UndervaluedFair: $19.15Overvalued
RITMUndervalued (+83.1%)

Margin of Safety

+83.1%

Fair Value

$63.34

Current Price

$9.27

$54.07 discount

UndervaluedFair: $63.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MFA6 strengths · Avg: 9.7/10
P/E RatioValuation
6.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
48.9%10/10

Keeps 49 of every $100 in revenue as profit

Operating MarginProfitability
54.0%10/10

Strong operational efficiency at 54.0%

EPS GrowthGrowth
61.9%10/10

Earnings expanding 61.9% YoY

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

RITM2 strengths · Avg: 9.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

Areas to Watch

MFA4 concerns · Avg: 2.5/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$654.04M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.162/10

Distress zone — elevated risk

Debt/EquityHealth
6.561/10

Elevated debt levels

RITM3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Altman Z-ScoreHealth
0.402/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MFA

The strongest argument for MFA centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 48.9% and operating margin at 54.0%. Revenue growth of 20.2% demonstrates continued momentum.

Bull Case : RITM

The strongest argument for RITM centers on Price/Book, P/E Ratio.

Bear Case : MFA

The primary concerns for MFA are PEG Ratio, Market Cap, Altman Z-Score. Debt-to-equity of 6.56 is elevated, increasing financial risk.

Bear Case : RITM

The primary concerns for RITM are Piotroski F-Score, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

MFA profiles as a growth stock while RITM is a value play — different risk/reward profiles.

MFA carries more volatility with a beta of 1.52 — expect wider price swings.

MFA is growing revenue faster at 20.2% — sustainability is the question.

RITM generates stronger free cash flow (172M), providing more financial flexibility.

Bottom Line

MFA scores higher overall (75/100 vs 49/100), backed by strong 48.9% margins and 20.2% revenue growth. RITM offers better value entry with a 83.1% 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.

MFA Financial Inc

REAL ESTATE · REIT - MORTGAGE · USA

MFA Financial, Inc., is a real estate investment trust (REIT) in the United States. The company is headquartered in New York, New York.

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Rithm Capital Corp.

REAL ESTATE · REIT - MORTGAGE · USA

Rhythm Capital Corp. The company is headquartered in New York, New York.

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