Rithm Capital Corp. (RITM) vs STARWOOD PROPERTY TRUST, INC. (STWD)

Rithm Capital Corp. and STARWOOD PROPERTY TRUST, INC. are both Reit Mortgage companies. Rithm Capital Corp. and STARWOOD PROPERTY TRUST, INC. are of similar size ($5.3B and $5.1B). Rithm Capital Corp. trades at the lower P/E: 13.0× against 24.3×. STARWOOD PROPERTY TRUST, INC. grew revenue faster over the last twelve months: 11.8% against −5.56%. STARWOOD PROPERTY TRUST, INC. has the higher net margin (10.9% vs 10.7%) and the lower return on invested capital (0.06% vs 3.21%). Both pay a dividend; STARWOOD PROPERTY TRUST, INC. yields more (10.0% vs 9.88%). Across the 22 metrics below, Rithm Capital Corp. leads on 13 and STARWOOD PROPERTY TRUST, INC. on 9.

Valuation

Metric RITM STWD Reit Mortgage median
P/E 13.01 24.34 7.80
P/S 1.60 2.62 1.90
P/B 0.69 0.77 0.61
Price to free cash flow n/m 8.62 5.90
EV/EBITDA 16.84 185.91 28.40
EV/Sales 13.42 14.10 16.02
Earnings yield 7.68% 4.11% 7.68%
Free cash flow yield (49.92%) 11.60% 11.60%

Profitability

Metric RITM STWD Reit Mortgage median
Gross margin 100.00% 29.13% 100.00%
Operating margin 75.25% 1.54% 35.40%
Net margin 10.74% 10.86% 11.85%
Free cash flow margin (79.63%) 30.39% 26.68%
Return on equity 4.81% 3.21% 4.81%
Return on assets 0.70% 0.35% 0.62%
Return on invested capital 3.21% 0.06% 1.22%

Growth

Metric RITM STWD Reit Mortgage median
Revenue growth (TTM) (5.56%) 11.78% 4.70%
EPS growth (last fiscal year) (37.72%) 4.55% —
Revenue growth, 5-year CAGR 64.52% 10.17% 14.60%
Net income growth, 5-year CAGR 0.00% 3.94% 0.00%

Health

Metric RITM STWD Reit Mortgage median
Debt to equity 4.44 3.47 3.30
Current ratio 0.76 1.46 1.00
Net debt to EBITDA 15.22 160.93 18.31

Dividend

Metric RITM STWD Reit Mortgage median
Dividend yield 9.88% 10.04% 13.05%
Payout ratio 0.43 1.10 1.24

Size

Metric RITM STWD Reit Mortgage median
Market cap 5.12b 5.32b 517.48m

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