WallStSmart

PennyMac Mortgage Investment Trust (PMT)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PennyMac Mortgage Investment Trust generates 15% more annual revenue ($684.41M vs $597.28M). STWD leads profitability with a 38.2% profit margin vs 24.3%. PMT appears more attractively valued with a PEG of 0.76. PMT earns a higher WallStSmart Score of 66/100 (B-).

PMT

Strong Buy

66

out of 100

Grade: B-

Growth: 6.3Profit: 6.0Value: 9.3Quality: 3.3
Piotroski: 3/9

STWD

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 6.7Quality: 2.5
Piotroski: 2/9Altman Z: 0.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PMTUndervalued (+77.6%)

Margin of Safety

+77.6%

Fair Value

$55.24

Current Price

$9.01

$46.23 discount

UndervaluedFair: $55.24Overvalued
STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$118.26

Current Price

$15.10

$103.16 discount

UndervaluedFair: $118.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PMT4 strengths · Avg: 9.3/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
24.3%9/10

Keeps 24 of every $100 in revenue as profit

PEG RatioValuation
0.768/10

Growing faster than its price suggests

STWD2 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.2%10/10

Keeps 38 of every $100 in revenue as profit

Areas to Watch

PMT4 concerns · Avg: 2.3/10
Market CapQuality
$812.73M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-2.94B2/10

Negative free cash flow — burning cash

Debt/EquityHealth
12.371/10

Elevated debt levels

STWD4 concerns · Avg: 3.5/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

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

Comparative Analysis Report

WallStSmart Research

Bull Case : PMT

The strongest argument for PMT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 24.3% and operating margin at 10.9%. PEG of 0.76 suggests the stock is reasonably priced for its growth.

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 : PMT

The primary concerns for PMT are Market Cap, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 12.37 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

PMT carries more volatility with a beta of 1.11 — expect wider price swings.

STWD is growing revenue faster at 13.4% — sustainability is the question.

STWD generates stronger free cash flow (-141M), providing more financial flexibility.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PMT scores higher overall (66/100 vs 49/100), backed by strong 24.3% margins. STWD offers better value entry with a 84.7% 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.

PennyMac Mortgage Investment Trust

REAL ESTATE · REIT - MORTGAGE · USA

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in mortgage-related assets in the United States. The company is headquartered in Westlake Village, California.

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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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