Redwood Trust Inc (RWT)vsStarwood Property Trust Inc (STWD)
RWT
Redwood Trust Inc
$5.33
+2.11%
REAL ESTATE · Cap: $637.35M
STWD
Starwood Property Trust Inc
$17.05
-0.23%
REAL ESTATE · Cap: $6.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 247% more annual revenue ($580.84M vs $167.46M). STWD leads profitability with a 60.5% profit margin vs -54.7%. RWT appears more attractively valued with a PEG of 1.47. STWD earns a higher WallStSmart Score of 59/100 (C).
RWT
Hold39
out of 100
Grade: F
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.4%
Fair Value
$10.70
Current Price
$5.33
$5.37 discount
Margin of Safety
+84.7%
Fair Value
$118.33
Current Price
$17.05
$101.28 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.8% year-over-year
Areas to Watch
Smaller company, higher risk/reward
ROE of -9.6% — below average capital efficiency
Revenue declined 13.4%
Earnings declined 52.6%
Expensive relative to growth rate
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 60.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : RWT
The strongest argument for RWT centers on Price/Book. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 26.42 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
RWT profiles as a turnaround stock while STWD is a growth play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.42 — expect wider price swings.
STWD is growing revenue faster at 21.8% — sustainability is the question.
STWD generates stronger free cash flow (-56M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (59/100 vs 39/100), backed by strong 60.5% margins and 21.8% revenue growth. RWT offers better value entry with a 37.4% 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.
Redwood Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.
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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