PennyMac Mortgage Investment Trust (PMT) vs Redwood Trust, Inc. (RWT)

PennyMac Mortgage Investment Trust and Redwood Trust, Inc. are both Reit Mortgage companies. PennyMac Mortgage Investment Trust is the larger, with a market value of $615.7M against $390.7M — 1.6× the size. Redwood Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; PennyMac Mortgage Investment Trust trades at 4.9×. Redwood Trust, Inc. grew revenue faster over the last twelve months: 27.7% against 19.6%. PennyMac Mortgage Investment Trust has the higher net margin (10.2% vs −0.09%) and the higher return on invested capital (2.92% vs −0.14%). Both pay a dividend; Redwood Trust, Inc. yields more (23.7% vs 23.1%). Across the 20 metrics below, PennyMac Mortgage Investment Trust leads on 13 and Redwood Trust, Inc. on 7.

Valuation

Metric PMT RWT Reit Mortgage median
P/E 4.87 n/m 7.10
P/S 0.50 0.28 1.77
P/B 0.46 0.44 0.55
Price to free cash flow n/m n/m 5.36
EV/EBITDA 19.75 n/m 28.29
EV/Sales 16.93 21.05 15.90
Earnings yield 20.52% (1.32%) 8.10%
Free cash flow yield (1,669.48%) (3,707.39%) 13.00%

Profitability

Metric PMT RWT Reit Mortgage median
Gross margin 91.15% 7.87% 100.00%
Operating margin 83.97% (4.47%) 35.40%
Net margin 10.21% (0.09%) 11.85%
Free cash flow margin (827.08%) (1,043.65%) 26.68%
Return on equity 9.44% (0.14%) 4.81%
Return on assets 0.59% (0.01%) 0.62%
Return on invested capital 2.92% (0.14%) 1.22%

Growth

Metric PMT RWT Reit Mortgage median
Revenue growth (TTM) 19.64% 27.74% 4.70%
EPS growth (last fiscal year) (27.74%) (290.62%) 45.25%
Revenue growth, 5-year CAGR 9.74% 15.64% 14.60%
Net income growth, 5-year CAGR 25.95% 0.00% 0.00%

Health

Metric PMT RWT Reit Mortgage median
Debt to equity 11.03 29.42 3.30
Current ratio 1.46 67.49 1.00
Net debt to EBITDA 16.25 (447.55) 18.31

Dividend

Metric PMT RWT Reit Mortgage median
Dividend yield 23.12% 23.68% 17.34%
Payout ratio 1.13 — 1.28

Size

Metric PMT RWT Reit Mortgage median
Market cap 615.65m 390.66m 479.53m

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