Nexpoint Real Estate Finance Inc (NREF)vsStarwood Property Trust Inc (STWD)
NREF
Nexpoint Real Estate Finance Inc
$13.37
+1.75%
REAL ESTATE · Cap: $311.21M
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 262% more annual revenue ($547.93M vs $151.56M). STWD leads profitability with a 75.1% profit margin vs 63.6%. NREF trades at a lower P/E of 4.5x. NREF earns a higher WallStSmart Score of 78/100 (B+).
NREF
Strong Buy78
out of 100
Grade: B+
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+89.1%
Fair Value
$136.19
Current Price
$13.37
$122.82 discount
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 77.0%
Revenue surging 39.5% year-over-year
Earnings expanding 108.5% YoY
Reasonable price relative to book value
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Elevated debt levels
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NREF
The strongest argument for NREF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 63.6% and operating margin at 77.0%. Revenue growth of 39.5% demonstrates continued momentum.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, Revenue Growth. Profitability is solid with margins at 75.1% and operating margin at 11.2%. Revenue growth of 62.6% demonstrates continued momentum.
Bear Case : NREF
The primary concerns for NREF are Market Cap, Debt/Equity. Debt-to-equity of 11.92 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
NREF carries more volatility with a beta of 1.21 — expect wider price swings.
STWD is growing revenue faster at 62.6% — sustainability is the question.
STWD generates stronger free cash flow (190M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NREF scores higher overall (78/100 vs 67/100), backed by strong 63.6% margins and 39.5% revenue growth. STWD offers better value entry with a 66.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Nexpoint Real Estate Finance Inc
REAL ESTATE · REIT - MORTGAGE · USA
NexPoint Real Estate Finance, Inc. is a real estate finance company in the United States. The company is headquartered in Dallas, Texas.
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.
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