Chicago Atlantic Real Estate Finance, Inc. (REFI) vs Redwood Trust, Inc. (RWT)

Chicago Atlantic Real Estate Finance, Inc. and Redwood Trust, Inc. are both Reit Mortgage companies. Redwood Trust, Inc. is the larger, with a market value of $390.7M against $240.6M — 1.6× the size. Redwood Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; Chicago Atlantic Real Estate Finance, Inc. trades at 6.7×. Redwood Trust, Inc. grew revenue faster over the last twelve months: 27.7% against −3.77%. Chicago Atlantic Real Estate Finance, Inc. has the higher net margin (54.6% vs −0.09%) and the higher return on invested capital (6.47% vs −0.14%). Both pay a dividend; Redwood Trust, Inc. yields more (23.7% vs 20.2%). Across the 18 metrics below, Chicago Atlantic Real Estate Finance, Inc. leads on 12 and Redwood Trust, Inc. on 6.

Valuation

Metric REFI RWT Reit Mortgage median
P/E 6.71 n/m 7.10
P/S 3.67 0.28 1.77
P/B 0.66 0.44 0.55
Price to free cash flow 7.35 n/m 5.36
EV/EBITDA 6.70 n/m 28.29
EV/Sales 3.43 21.05 15.90
Earnings yield 14.91% (1.32%) 8.10%
Free cash flow yield 13.60% (3,707.39%) 13.00%

Profitability

Metric REFI RWT Reit Mortgage median
Gross margin 100.00% 7.87% 100.00%
Operating margin 55.37% (4.47%) 35.40%
Net margin 54.57% (0.09%) 11.85%
Free cash flow margin 49.97% (1,043.65%) 26.68%
Return on equity 9.61% (0.14%) 4.81%
Return on assets 6.41% (0.01%) 0.62%
Return on invested capital 6.47% (0.14%) 1.22%

Growth

Metric REFI RWT Reit Mortgage median
Revenue growth (TTM) (3.77%) 27.74% 4.70%
EPS growth (last fiscal year) (10.64%) (290.62%) 45.25%
Revenue growth, 5-year CAGR — 15.64% 14.60%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric REFI RWT Reit Mortgage median
Debt to equity 0.00 29.42 3.30
Current ratio 0.09 67.49 1.00
Net debt to EBITDA (0.44) (447.55) 18.31

Dividend

Metric REFI RWT Reit Mortgage median
Dividend yield 20.17% 23.68% 17.34%
Payout ratio 1.37 — 1.28

Size

Metric REFI RWT Reit Mortgage median
Market cap 240.59m 390.66m 479.53m

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