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Redwood Trust (RWT) Competitors

Redwood Trust logo
$6.77 +0.13 (+1.96%)
(As of 12/20/2024 05:40 PM ET)

RWT vs. RC, ARI, TWO, CIM, PMT, MFA, ARR, DX, NYMT, and IVR

Should you be buying Redwood Trust stock or one of its competitors? The main competitors of Redwood Trust include Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), Chimera Investment (CIM), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), ARMOUR Residential REIT (ARR), 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.

Ready Capital (NYSE:RC) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, community ranking, dividends, media sentiment, valuation, profitability, institutional ownership, risk and analyst recommendations.

In the previous week, Ready Capital had 6 more articles in the media than Redwood Trust. MarketBeat recorded 9 mentions for Ready Capital and 3 mentions for Redwood Trust. Ready Capital's average media sentiment score of 1.47 beat Redwood Trust's score of 1.14 indicating that Ready Capital is being referred to more favorably in the media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Ready Capital
3 Very Positive mention(s)
1 Positive mention(s)
1 Neutral mention(s)
0 Negative mention(s)
0 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

Ready Capital currently has a consensus target price of $9.11, suggesting a potential upside of 25.44%. Redwood Trust has a consensus target price of $8.03, suggesting a potential upside of 18.63%. Given Ready Capital's higher possible upside, analysts plainly believe Ready Capital is more favorable than Redwood Trust.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ready Capital
1 Sell rating(s)
5 Hold rating(s)
2 Buy rating(s)
0 Strong Buy rating(s)
2.13
Redwood Trust
0 Sell rating(s)
4 Hold rating(s)
3 Buy rating(s)
1 Strong Buy rating(s)
2.63

Redwood Trust received 176 more outperform votes than Ready Capital when rated by MarketBeat users. Likewise, 65.12% of users gave Redwood Trust an outperform vote while only 60.55% of users gave Ready Capital an outperform vote.

CompanyUnderperformOutperform
Ready CapitalOutperform Votes
244
60.55%
Underperform Votes
159
39.45%
Redwood TrustOutperform Votes
420
65.12%
Underperform Votes
225
34.88%

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

CompanyGross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Ready Capital$81.15M15.08$339.45M-$0.70-10.37
Redwood Trust$248.27M3.61-$2.27M$0.5512.31

Ready Capital pays an annual dividend of $1.00 per share and has a dividend yield of 13.8%. Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 10.6%. Ready Capital pays out -142.9% 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. Ready Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

55.9% of Ready Capital shares are held by institutional investors. Comparatively, 74.3% of Redwood Trust shares are held by institutional investors. 1.1% of Ready Capital shares are held by insiders. Comparatively, 2.5% of Redwood Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Redwood Trust has a net margin of 9.35% compared to Ready Capital's net margin of -11.65%. Ready Capital's return on equity of 7.53% beat Redwood Trust's return on equity.

Company Net Margins Return on Equity Return on Assets
Ready Capital-11.65% 7.53% 1.49%
Redwood Trust 9.35%6.01%0.43%

Ready Capital has a beta of 1.43, meaning that its share price is 43% 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 Ready Capital on 12 of the 21 factors compared between the two stocks.

New MarketBeat Followers Over Time

This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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Media Sentiment Over Time

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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RWT vs. The Competition

MetricRedwood TrustReal estate investment trusts IndustryFinance SectorNYSE Exchange
Market Cap$895.45M$7.00B$10.99B$19.18B
Dividend Yield10.15%6.80%9.85%3.59%
P/E Ratio12.3142.8028.5441.28
Price / Sales3.617.8248.6117.59
Price / Cash11.5917.7930.3421.28
Price / Book0.682.542.735.32
Net Income-$2.27M$146.30M$1.03B$989.88M
7 Day Performance-5.05%-3.82%-2.89%-3.54%
1 Month Performance-4.78%-4.28%-2.86%-3.68%
1 Year Performance-9.19%1.86%11.28%12.14%

Redwood Trust Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
RWT
Redwood Trust
3.929 of 5 stars
$6.77
+2.0%
$8.03
+18.6%
-7.8%$895.45M$248.27M12.31289News Coverage
Positive News
High Trading Volume
RC
Ready Capital
3.0418 of 5 stars
$7.57
+1.6%
$9.11
+20.3%
-32.3%$1.28B$81.15M-10.77350Dividend Announcement
Positive News
ARI
Apollo Commercial Real Estate Finance
2.5399 of 5 stars
$9.22
+0.7%
$9.63
+4.4%
-25.9%$1.27B$201.16M-9.96N/ANews Coverage
Positive News
TWO
Two Harbors Investment
3.3949 of 5 stars
$11.92
+0.7%
$13.71
+15.0%
-16.3%$1.24B$-255,294,000.00-2.46100Dividend Announcement
CIM
Chimera Investment
4.5564 of 5 stars
$15.23
+1.0%
$16.00
+5.1%
-6.2%$1.23B$419.93M4.5740Dividend Announcement
News Coverage
PMT
PennyMac Mortgage Investment Trust
4.1292 of 5 stars
$13.69
+1.0%
$15.17
+10.8%
-15.4%$1.19B$429.02M9.961Dividend Announcement
News Coverage
Positive News
MFA
MFA Financial
3.845 of 5 stars
$10.93
+1.0%
$14.00
+28.1%
-10.1%$1.12B$605.60M6.81377
ARR
ARMOUR Residential REIT
3.8149 of 5 stars
$19.15
+0.1%
$20.50
+7.0%
-0.7%$1.07B$145.72M8.21N/ANews Coverage
Positive News
DX
Dynex Capital
4.0183 of 5 stars
$12.72
+0.4%
$13.56
+6.6%
-0.4%$1.01B$207.52M10.0622Positive News
NYMT
New York Mortgage Trust
2.8261 of 5 stars
$6.52
+0.2%
$7.75
+18.9%
-31.8%$590.58M$340.15M-19.6770Gap Down
IVR
Invesco Mortgage Capital
2.2218 of 5 stars
$8.60
+1.4%
$10.00
+16.3%
-8.2%$522.28M$103.09M7.07N/ADividend Announcement
News Coverage

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This page (NYSE:RWT) was last updated on 12/21/2024 by MarketBeat.com Staff
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