STWD vs. NLY, AGNC, RC, ARI, TWO, PMT, MFA, CIM, ARR, and RWT
Should you be buying Starwood Property Trust stock or one of its competitors? The main competitors of Starwood Property Trust include Annaly Capital Management (NLY), AGNC Investment (AGNC), Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), Chimera Investment (CIM), ARMOUR Residential REIT (ARR), and Redwood Trust (RWT). These companies are all part of the "mortgage reits" industry.
Starwood Property Trust (NYSE:STWD) and Annaly Capital Management (NYSE:NLY) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, community ranking, institutional ownership, valuation, analyst recommendations, risk and media sentiment.
Starwood Property Trust presently has a consensus target price of $21.88, indicating a potential upside of 12.53%. Annaly Capital Management has a consensus target price of $21.08, indicating a potential upside of 7.02%. Given Starwood Property Trust's stronger consensus rating and higher probable upside, equities research analysts clearly believe Starwood Property Trust is more favorable than Annaly Capital Management.
49.8% of Starwood Property Trust shares are held by institutional investors. Comparatively, 51.6% of Annaly Capital Management shares are held by institutional investors. 5.4% of Starwood Property Trust shares are held by company insiders. Comparatively, 0.2% of Annaly Capital Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Starwood Property Trust has a net margin of 21.20% compared to Annaly Capital Management's net margin of -8.38%. Annaly Capital Management's return on equity of 15.13% beat Starwood Property Trust's return on equity.
In the previous week, Starwood Property Trust had 6 more articles in the media than Annaly Capital Management. MarketBeat recorded 7 mentions for Starwood Property Trust and 1 mentions for Annaly Capital Management. Starwood Property Trust's average media sentiment score of 1.30 beat Annaly Capital Management's score of 0.40 indicating that Starwood Property Trust is being referred to more favorably in the media.
Annaly Capital Management received 38 more outperform votes than Starwood Property Trust when rated by MarketBeat users. However, 68.79% of users gave Starwood Property Trust an outperform vote while only 55.49% of users gave Annaly Capital Management an outperform vote.
Starwood Property Trust has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 9.9%. Annaly Capital Management pays an annual dividend of $2.60 per share and has a dividend yield of 13.2%. Starwood Property Trust pays out 138.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Capital Management pays out -268.0% of its earnings in the form of a dividend. Annaly Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Starwood Property Trust has higher earnings, but lower revenue than Annaly Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Starwood Property Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Starwood Property Trust beats Annaly Capital Management on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STWD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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