Starwood Property Trust Inc (STWD)vsTwo Harbors Investments Corp (TWO)
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
TWO
Two Harbors Investments Corp
$11.32
-0.35%
REAL ESTATE · Cap: $1.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 48% more annual revenue ($547.93M vs $370.01M). STWD leads profitability with a 75.1% profit margin vs -122.8%. STWD appears more attractively valued with a PEG of 2.73. STWD earns a higher WallStSmart Score of 67/100 (B-).
STWD
Strong Buy67
out of 100
Grade: B-
TWO
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Intrinsic value data unavailable for TWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Reasonable price relative to book value
Strong operational efficiency at 22.0%
Areas to Watch
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
ROE of -23.2% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TWO
The strongest argument for TWO centers on Price/Book, Operating Margin.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Bear Case : TWO
The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
STWD profiles as a growth stock while TWO is a turnaround play — different risk/reward profiles.
TWO carries more volatility with a beta of 1.21 — 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 43/100), backed by strong 75.1% margins and 62.6% revenue growth. 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.
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.
Two Harbors Investments Corp
REAL ESTATE · REIT - MORTGAGE · USA
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.
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