Redwood Trust (RWT) Competitors

ARMOUR Residential REIT (NYSE:ARR) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, community ranking, risk, profitability, dividends, media sentiment and valuation.

Which has more volatility & risk, ARR or RWT?

ARMOUR Residential REIT has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Does the media prefer ARR or RWT?

In the previous week, ARMOUR Residential REIT had 3 more articles in the media than Redwood Trust. MarketBeat recorded 6 mentions for ARMOUR Residential REIT and 3 mentions for Redwood Trust. Redwood Trust's average media sentiment score of 1.48 beat ARMOUR Residential REIT's score of 0.98 indicating that Redwood Trust is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
ARMOUR Residential REIT	3 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Redwood Trust	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ARR or RWT more profitable?

Redwood Trust has a net margin of 9.35% compared to ARMOUR Residential REIT's net margin of -2.61%. ARMOUR Residential REIT's return on equity of 16.00% beat Redwood Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
ARMOUR Residential REIT	-2.61%	16.00%	1.65%
Redwood Trust	9.35%	6.91%	0.47%

Do analysts prefer ARR or RWT?

ARMOUR Residential REIT currently has a consensus price target of $20.50, indicating a potential upside of 43.91%. Redwood Trust has a consensus price target of $7.83, indicating a potential upside of 46.83%. Given Redwood Trust's stronger consensus rating and higher probable upside, analysts clearly believe Redwood Trust is more favorable than ARMOUR Residential REIT.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARMOUR Residential REIT	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Redwood Trust	0 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.50

Do institutionals & insiders hold more shares of ARR or RWT?

54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 74.3% of Redwood Trust shares are owned by institutional investors. 0.4% of ARMOUR Residential REIT shares are owned by company insiders. Comparatively, 2.5% of Redwood Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Does the MarketBeat Community believe in ARR or RWT?

Redwood Trust received 158 more outperform votes than ARMOUR Residential REIT when rated by MarketBeat users. Likewise, 64.92% of users gave Redwood Trust an outperform vote while only 49.07% of users gave ARMOUR Residential REIT an outperform vote.

Company	Underperform	Outperform
ARMOUR Residential REIT	Outperform Votes 264 49.07%	Underperform Votes 274 50.93%
Redwood Trust	Outperform Votes 422 64.92%	Underperform Votes 228 35.08%

Is ARR or RWT a better dividend stock?

ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 20.2%. Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 13.5%. ARMOUR Residential REIT pays out -669.8% of its earnings in the form of a dividend. 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. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has better valuation & earnings, ARR or RWT?

Redwood Trust has higher revenue and earnings than ARMOUR Residential REIT. ARMOUR Residential REIT is trading at a lower price-to-earnings ratio than Redwood Trust, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARMOUR Residential REIT	-$478K	-2,383.15	-$14.39M	-$0.43	-33.13
Redwood Trust	$223.32M	3.18	$54M	$0.33	16.17

Summary

Redwood Trust beats ARMOUR Residential REIT on 15 of the 21 factors compared between the two stocks.