Redwood Trust (RWT) Competitors

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

Does the MarketBeat Community favor DX or RWT?

Redwood Trust received 116 more outperform votes than Dynex Capital when rated by MarketBeat users. Likewise, 65.46% of users gave Redwood Trust an outperform vote while only 59.68% of users gave Dynex Capital an outperform vote.

Company	Underperform	Outperform
Dynex Capital	Outperform Votes 299 59.68%	Underperform Votes 202 40.32%
Redwood Trust	Outperform Votes 415 65.46%	Underperform Votes 219 34.54%

Is DX or RWT a better dividend stock?

Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 12.4%. Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 9.6%. Dynex Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Redwood Trust pays out 914.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital has increased its dividend for 2 consecutive years. Dynex Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals and insiders have more ownership in DX or RWT?

38.3% of Dynex Capital shares are owned by institutional investors. Comparatively, 74.3% of Redwood Trust shares are owned by institutional investors. 2.5% of Dynex Capital shares are owned by insiders. Comparatively, 2.5% of Redwood Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Is DX or RWT more profitable?

Dynex Capital has a net margin of 30.50% compared to Dynex Capital's net margin of 3.06%. Dynex Capital's return on equity of 4.83% beat Redwood Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Dynex Capital	30.50%	-7.25%	-0.92%
Redwood Trust	3.06%	4.83%	0.38%

Do analysts recommend DX or RWT?

Dynex Capital currently has a consensus price target of $13.31, indicating a potential upside of 5.57%. Redwood Trust has a consensus price target of $7.66, indicating a potential upside of 14.61%. Given Dynex Capital's stronger consensus rating and higher probable upside, analysts clearly believe Redwood Trust is more favorable than Dynex Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Capital	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60
Redwood Trust	0 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.75

Does the media prefer DX or RWT?

In the previous week, Redwood Trust had 1 more articles in the media than Dynex Capital. MarketBeat recorded 3 mentions for Redwood Trust and 2 mentions for Dynex Capital. Dynex Capital's average media sentiment score of 1.32 beat Redwood Trust's score of 0.59 indicating that Redwood Trust is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Dynex Capital	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Redwood Trust	2 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, DX or RWT?

Dynex Capital has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Which has stronger earnings & valuation, DX or RWT?

Redwood Trust has higher revenue and earnings than Dynex Capital. Dynex 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$207.52M	3.90	-$6.13M	$1.17	10.78
Redwood Trust	$724M	1.22	-$2.27M	$0.07	95.43

Summary

Redwood Trust beats Dynex Capital on 15 of the 21 factors compared between the two stocks.