Apollo Commercial Real Estate Finance (ARI) vs Redwood Trust, Inc. (RWT)

Apollo Commercial Real Estate Finance and Redwood Trust, Inc. are both Reit Mortgage companies. Redwood Trust, Inc. is the larger, with a market value of $390.7M against $309.8M — 1.3× the size. Redwood Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; Apollo Commercial Real Estate Finance trades at 3.0×. Redwood Trust, Inc. grew revenue faster over the last twelve months: −1.12% against −14.7%. Apollo Commercial Real Estate Finance has the higher net margin (50.3% vs −3.66%) and the higher return on invested capital (339.7% vs −0.08%). Both pay a dividend; Apollo Commercial Real Estate Finance yields more (176.4% vs 23.2%). Across the 20 metrics below, Apollo Commercial Real Estate Finance leads on 16 and Redwood Trust, Inc. on 4.

Valuation

Metric ARI RWT Reit Mortgage median
P/E 3.01 n/m 14.55
P/S 1.33 0.35 1.72
P/B 0.25 0.45 0.52
Price to free cash flow 14.75 n/m 4.35
EV/EBITDA 3.77 n/m 28.27
EV/Sales 1.26 27.31 15.73
Earnings yield 33.20% (10.50%) 0.23%
Free cash flow yield 6.78% (3,659.30%) 13.86%

Profitability

Metric ARI RWT Reit Mortgage median
Gross margin 87.84% 12.01% 100.00%
Operating margin 35.13% (3.54%) 31.94%
Net margin 50.33% (3.66%) (1.81%)
Free cash flow margin 9.00% 0.00% 27.05%
Return on equity 7.72% 0.00% (0.49%)
Return on assets 2.00% (0.15%) (0.06%)
Return on invested capital 339.65% (0.08%) 0.79%

Growth

Metric ARI RWT Reit Mortgage median
Revenue growth (TTM) (14.66%) (1.12%) 1.39%
EPS growth (last fiscal year) 183.51% (290.62%) 45.25%
Revenue growth, 5-year CAGR (0.51%) 15.64% 14.60%
Net income growth, 5-year CAGR 88.28% 0.00% 0.00%

Health

Metric ARI RWT Reit Mortgage median
Debt to equity 0.00 34.74 2.91
Current ratio 2.45 0.00 0.82
Net debt to EBITDA 9.96 (447.55) 18.31

Dividend

Metric ARI RWT Reit Mortgage median
Dividend yield 176.35% 23.15% 17.37%
Payout ratio 5.31 — 1.87

Size

Metric ARI RWT Reit Mortgage median
Market cap 309.80m 390.66m 409.49m

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