RWT vs. ARI, TWO, PMT, CIM, RC, DX, MFA, ARR, NYMT, and IVR
Should you be buying Redwood Trust stock or one of its competitors? The main competitors of Redwood Trust include Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), Chimera Investment (CIM), Ready Capital (RC), Dynex Capital (DX), MFA Financial (MFA), ARMOUR Residential REIT (ARR), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Redwood Trust vs.
Redwood Trust (NYSE:RWT) and Apollo Commercial Real Estate Finance (NYSE:ARI) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, dividends, risk, analyst recommendations, community ranking, profitability, institutional ownership, valuation and earnings.
Redwood Trust currently has a consensus price target of $7.84, indicating a potential upside of 22.08%. Apollo Commercial Real Estate Finance has a consensus price target of $9.31, indicating a potential downside of 5.41%. Given Redwood Trust's stronger consensus rating and higher probable upside, analysts clearly believe Redwood Trust is more favorable than Apollo Commercial Real Estate Finance.
Redwood Trust has a net margin of 9.35% compared to Apollo Commercial Real Estate Finance's net margin of -39.40%. Apollo Commercial Real Estate Finance's return on equity of 9.37% beat Redwood Trust's return on equity.
74.3% of Redwood Trust shares are held by institutional investors. Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 2.5% of Redwood Trust shares are held by insiders. Comparatively, 0.7% of Apollo Commercial Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Redwood Trust has higher revenue and earnings than Apollo Commercial Real Estate Finance. Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Redwood Trust, indicating that it is currently the more affordable of the two stocks.
In the previous week, Redwood Trust had 10 more articles in the media than Apollo Commercial Real Estate Finance. MarketBeat recorded 13 mentions for Redwood Trust and 3 mentions for Apollo Commercial Real Estate Finance. Redwood Trust's average media sentiment score of 1.25 beat Apollo Commercial Real Estate Finance's score of 0.71 indicating that Redwood Trust is being referred to more favorably in the media.
Redwood Trust has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.
Redwood Trust received 103 more outperform votes than Apollo Commercial Real Estate Finance when rated by MarketBeat users. Likewise, 65.02% of users gave Redwood Trust an outperform vote while only 57.58% of users gave Apollo Commercial Real Estate Finance an outperform vote.
Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 11.2%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 10.2%. Redwood Trust pays out 218.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Commercial Real Estate Finance pays out -105.3% of its earnings in the form of a dividend.
Summary
Redwood Trust beats Apollo Commercial Real Estate Finance on 16 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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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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This page (NYSE:RWT) was last updated on 2/22/2025 by MarketBeat.com Staff