Nexpoint Real Estate Finance Inc (NREF)vsStarwood Property Trust Inc (STWD)
NREF
Nexpoint Real Estate Finance Inc
$16.27
-1.39%
REAL ESTATE · Cap: $368.32M
STWD
Starwood Property Trust Inc
$14.94
-0.93%
REAL ESTATE · Cap: $6.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 295% more annual revenue ($597.28M vs $151.29M). NREF leads profitability with a 66.6% profit margin vs 38.2%. NREF trades at a lower P/E of 6.8x. NREF earns a higher WallStSmart Score of 56/100 (C).
NREF
Buy56
out of 100
Grade: C
STWD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.2%
Fair Value
$37.46
Current Price
$16.27
$21.19 discount
Margin of Safety
+84.7%
Fair Value
$118.26
Current Price
$14.94
$103.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 67 of every $100 in revenue as profit
Strong operational efficiency at 63.3%
Every $100 of equity generates 27 in profit
Reasonable price relative to book value
Keeps 38 of every $100 in revenue as profit
Areas to Watch
Smaller company, higher risk/reward
Revenue declined 13.7%
Earnings declined 46.8%
Negative free cash flow — burning cash
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 : NREF
The strongest argument for NREF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 66.6% and operating margin at 63.3%.
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 : NREF
The primary concerns for NREF are Market Cap, Revenue Growth, EPS Growth. Debt-to-equity of 11.79 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
NREF profiles as a declining stock while STWD is a mature play — different risk/reward profiles.
NREF carries more volatility with a beta of 1.15 — expect wider price swings.
STWD is growing revenue faster at 13.4% — sustainability is the question.
NREF generates stronger free cash flow (-6M), providing more financial flexibility.
Bottom Line
NREF scores higher overall (56/100 vs 49/100), backed by strong 66.6% margins. STWD offers better value entry with a 84.7% 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.
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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