MFA Financial Inc (MFA)vsStarwood Property Trust Inc (STWD)
MFA
MFA Financial Inc
$8.56
-0.12%
REAL ESTATE · Cap: $877.44M
STWD
Starwood Property Trust Inc
$15.62
0.00%
REAL ESTATE · Cap: $6.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 97% more annual revenue ($597.28M vs $302.83M). MFA leads profitability with a 48.9% profit margin vs 38.2%. STWD appears more attractively valued with a PEG of 1.74. MFA earns a higher WallStSmart Score of 75/100 (B).
MFA
Strong Buy75
out of 100
Grade: B
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.9%
Fair Value
$19.40
Current Price
$8.56
$10.84 discount
Margin of Safety
+84.8%
Fair Value
$118.70
Current Price
$15.62
$103.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 49 of every $100 in revenue as profit
Strong operational efficiency at 54.0%
Earnings expanding 61.9% YoY
Revenue surging 20.2% year-over-year
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : 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 : 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 : 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
MFA profiles as a growth stock while STWD is a mature play — different risk/reward profiles.
MFA carries more volatility with a beta of 1.50 — expect wider price swings.
MFA is growing revenue faster at 20.2% — sustainability is the question.
MFA generates stronger free cash flow (129M), 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. STWD offers better value entry with a 84.8% 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.
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.
Compare with Other REIT - MORTGAGE Stocks
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