Rithm Capital Corp. (RITM)vsStarwood Property Trust Inc (STWD)
RITM
Rithm Capital Corp.
$9.04
+3.08%
REAL ESTATE · Cap: $4.88B
STWD
Starwood Property Trust Inc
$17.40
+1.84%
REAL ESTATE · Cap: $6.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 590% more annual revenue ($3.78B vs $547.93M). STWD leads profitability with a 75.1% profit margin vs 18.4%. RITM trades at a lower P/E of 8.4x. STWD earns a higher WallStSmart Score of 67/100 (B-).
RITM
Buy51
out of 100
Grade: C-
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-51.3%
Fair Value
$7.07
Current Price
$9.04
$1.97 premium
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.39
$36.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
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
Weak financial health signals
Revenue declined 8.3%
Earnings declined 81.0%
Negative free cash flow — burning cash
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : RITM
The strongest argument for RITM centers on P/E Ratio, Price/Book. Profitability is solid with margins at 18.4% and operating margin at 19.2%.
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 : RITM
The primary concerns for RITM are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
RITM profiles as a declining stock while STWD is a growth play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.20 — 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.
Bottom Line
STWD scores higher overall (67/100 vs 51/100), backed by strong 75.1% margins and 62.6% revenue growth. Both earn "Strong Buy" and "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.
Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. 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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