Adamas Trust, Inc. (ADAM) vs Redwood Trust, Inc. (RWT)

Adamas Trust, Inc. and Redwood Trust, Inc. are both Reit Mortgage companies. Adamas Trust, Inc. is the larger, with a market value of $534.6M against $390.7M — 1.4× the size. Adamas Trust, Inc. grew revenue faster over the last twelve months: 27.1% against −1.12%. Redwood Trust, Inc. has the higher net margin (−3.66% vs −7.02%) and the lower return on invested capital (−0.08% vs 0.18%). Both pay a dividend; Redwood Trust, Inc. yields more (23.2% vs 17.4%). Across the 19 metrics below, Adamas Trust, Inc. leads on 11 and Redwood Trust, Inc. on 8.

Valuation

Metric ADAM RWT Reit Mortgage median
P/E n/m n/m 14.55
P/S 0.77 0.35 1.72
P/B 0.73 0.45 0.52
Price to free cash flow 1.52 n/m 4.35
EV/EBITDA 152.48 n/m 28.27
EV/Sales 17.19 27.31 15.73
Earnings yield (9.11%) (10.50%) 0.23%
Free cash flow yield 65.96% (3,659.30%) 13.86%

Profitability

Metric ADAM RWT Reit Mortgage median
Gross margin 28.27% 12.01% 100.00%
Operating margin 5.27% (3.54%) 31.94%
Net margin (7.02%) (3.66%) (1.81%)
Free cash flow margin 50.56% 0.00% 27.05%
Return on equity (6.20%) 0.00% (0.49%)
Return on assets (0.38%) (0.15%) (0.06%)
Return on invested capital 0.18% (0.08%) 0.79%

Growth

Metric ADAM RWT Reit Mortgage median
Revenue growth (TTM) 27.09% (1.12%) 1.39%
EPS growth (last fiscal year) 196.49% (290.62%) 45.25%
Revenue growth, 5-year CAGR 11.44% 15.64% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ADAM RWT Reit Mortgage median
Debt to equity 9.22 34.74 2.91
Current ratio 19.06 0.00 0.82
Net debt to EBITDA 55.86 (447.55) 18.31

Dividend

Metric ADAM RWT Reit Mortgage median
Dividend yield 17.37% 23.15% 17.37%
Payout ratio 0.61 — 1.87

Size

Metric ADAM RWT Reit Mortgage median
Market cap 534.60m 390.66m 409.49m

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