WallStSmart

MFA Financial Inc (MFA)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates 102% more annual revenue ($580.84M vs $288.15M). STWD leads profitability with a 60.5% profit margin vs 46.7%. STWD appears more attractively valued with a PEG of 1.74. STWD earns a higher WallStSmart Score of 59/100 (C).

MFA

Hold

47

out of 100

Grade: D+

Growth: 3.0Profit: 5.0Value: 8.0Quality: 5.8
Piotroski: 4/9

STWD

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MFAUndervalued (+48.2%)

Margin of Safety

+48.2%

Fair Value

$18.75

Current Price

$9.15

$9.60 discount

UndervaluedFair: $18.75Overvalued
STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$118.33

Current Price

$17.05

$101.28 discount

UndervaluedFair: $118.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MFA3 strengths · Avg: 10.0/10
P/E RatioValuation
10.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
46.7%10/10

Keeps 47 of every $100 in revenue as profit

STWD4 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
60.5%10/10

Keeps 61 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.8%8/10

Revenue surging 21.8% year-over-year

Areas to Watch

MFA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$947.43M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Revenue GrowthGrowth
-46.5%2/10

Revenue declined 46.5%

STWD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

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

EPS GrowthGrowth
-60.4%2/10

Earnings declined 60.4%

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 46.7% and operating margin at -2.3%.

Bull Case : STWD

The strongest argument for STWD centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.

Bear Case : MFA

The primary concerns for MFA are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 3.65 is elevated, increasing financial risk.

Bear Case : STWD

The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

MFA profiles as a declining stock while STWD is a growth play — different risk/reward profiles.

MFA carries more volatility with a beta of 1.50 — expect wider price swings.

STWD is growing revenue faster at 21.8% — sustainability is the question.

MFA generates stronger free cash flow (71M), providing more financial flexibility.

Bottom Line

STWD scores higher overall (59/100 vs 47/100), backed by strong 60.5% margins and 21.8% revenue growth. MFA offers better value entry with a 48.2% margin of safety. Both earn "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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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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