WallStSmart

Ready Capital Corp (RC)vsStarwood Property Trust Inc (STWD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starwood Property Trust Inc generates -321% more annual revenue ($597.28M vs $-270.31M). STWD leads profitability with a 38.2% profit margin vs 0.0%. STWD appears more attractively valued with a PEG of 1.74. RC earns a higher WallStSmart Score of 54/100 (C-).

RC

Buy

54

out of 100

Grade: C-

Growth: 6.7Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 6/9Altman Z: 0.17

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

Intrinsic value data unavailable for RC.

STWDUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$118.26

Current Price

$14.94

$103.32 discount

UndervaluedFair: $118.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RC3 strengths · Avg: 10.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
350.0%10/10

Strong operational efficiency at 350.0%

EPS GrowthGrowth
305.3%10/10

Earnings expanding 305.3% YoY

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

RC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Market CapQuality
$289.64M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

PEG RatioValuation
2.742/10

Expensive relative to growth rate

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

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

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 : RC

The strongest argument for RC centers on Price/Book, Operating Margin, EPS 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 : RC

The primary concerns for RC are Revenue Growth, Market Cap, Profit Margin. Debt-to-equity of 3.74 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

RC profiles as a value stock while STWD is a mature play — different risk/reward profiles.

RC carries more volatility with a beta of 1.53 — expect wider price swings.

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

RC generates stronger free cash flow (75M), providing more financial flexibility.

Bottom Line

RC scores higher overall (54/100 vs 49/100). 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.

Ready Capital Corp

REAL ESTATE · REIT - MORTGAGE · USA

Ready Capital Corporation, is a real estate finance company in the United States. The company is headquartered in New York, New York.

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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