RWT vs. ARI, TWO, RC, CIM, PMT, ARR, MFA, DX, 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), Ready Capital (RC), Chimera Investment (CIM), PennyMac Mortgage Investment Trust (PMT), ARMOUR Residential REIT (ARR), MFA Financial (MFA), Dynex Capital (DX), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Redwood Trust vs.
Apollo Commercial Real Estate Finance (NYSE:ARI) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, community ranking, profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and media sentiment.
In the previous week, Apollo Commercial Real Estate Finance and Apollo Commercial Real Estate Finance both had 5 articles in the media. Redwood Trust's average media sentiment score of 0.81 beat Apollo Commercial Real Estate Finance's score of -0.06 indicating that Redwood Trust is being referred to more favorably in the news media.
Redwood Trust received 101 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 57.89% of users gave Apollo Commercial Real Estate Finance an outperform vote.
54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. Comparatively, 74.3% of Redwood Trust shares are held by institutional investors. 0.7% of Apollo Commercial Real Estate Finance shares are held by insiders. Comparatively, 2.5% of Redwood Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Redwood Trust has a net margin of 9.35% compared to Apollo Commercial Real Estate Finance's net margin of -35.84%. Apollo Commercial Real Estate Finance's return on equity of 9.11% beat Redwood Trust's return on equity.
Apollo Commercial Real Estate Finance presently has a consensus target price of $9.31, suggesting a potential upside of 3.99%. Redwood Trust has a consensus target price of $7.97, suggesting a potential upside of 24.22%. Given Redwood Trust's stronger consensus rating and higher possible upside, analysts clearly believe Redwood Trust is more favorable than Apollo Commercial Real Estate Finance.
Apollo Commercial Real Estate Finance has higher revenue and earnings than Redwood Trust. 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.
Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 11.2%. 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 out -108.7% of its earnings in the form of a dividend. Redwood Trust pays out 130.9% 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 has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.
Summary
Redwood Trust beats Apollo Commercial Real Estate Finance on 13 of the 20 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 1/21/2025 by MarketBeat.com Staff