Franklin BSP Realty Trust, Inc. (FBRT) vs Redwood Trust, Inc. (RWT)

Franklin BSP Realty Trust, Inc. and Redwood Trust, Inc. are both Reit Mortgage companies. Franklin BSP Realty Trust, Inc. is the larger, with a market value of $606.2M against $468.5M — 1.3× the size. Redwood Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin BSP Realty Trust, Inc. trades at 15.8×. Franklin BSP Realty Trust, Inc. grew revenue faster over the last twelve months: 37.0% against 27.7%. Franklin BSP Realty Trust, Inc. has the higher net margin (12.2% vs −0.09%) and the higher return on invested capital (0.78% vs −0.14%). Both pay a dividend; Franklin BSP Realty Trust, Inc. yields more (11.6% vs 10.9%). Across the 20 metrics below, Franklin BSP Realty Trust, Inc. leads on 18 and Redwood Trust, Inc. on 2.

Valuation

Metric FBRT RWT Reit Mortgage median
P/E 15.84 n/m 7.80
P/S 1.74 0.34 1.90
P/B 0.44 0.54 0.61
Price to free cash flow 2.97 n/m 5.90
EV/EBITDA 53.11 n/m 28.40
EV/Sales 14.88 21.12 16.02
Earnings yield 6.31% (1.08%) 7.68%
Free cash flow yield 33.63% (3,029.70%) 11.60%

Profitability

Metric FBRT RWT Reit Mortgage median
Gross margin 92.00% 7.87% 100.00%
Operating margin 22.30% (4.47%) 35.40%
Net margin 12.19% (0.09%) 11.85%
Free cash flow margin 58.62% (1,043.65%) 26.68%
Return on equity 3.05% (0.14%) 4.81%
Return on assets 0.62% (0.01%) 0.62%
Return on invested capital 0.78% (0.14%) 1.22%

Growth

Metric FBRT RWT Reit Mortgage median
Revenue growth (TTM) 36.99% 27.74% 4.70%
EPS growth (last fiscal year) (21.95%) (290.62%) —
Revenue growth, 5-year CAGR 18.09% 15.64% 14.60%
Net income growth, 5-year CAGR 6.78% 0.00% 0.00%

Health

Metric FBRT RWT Reit Mortgage median
Debt to equity 2.85 29.42 3.30
Current ratio 96.80 67.49 1.00
Net debt to EBITDA 43.97 (447.55) 18.31

Dividend

Metric FBRT RWT Reit Mortgage median
Dividend yield 11.55% 10.94% 13.05%
Payout ratio 0.83 2.31 1.24

Size

Metric FBRT RWT Reit Mortgage median
Market cap 606.23m 468.53m 517.48m

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