Redwood Trust, Inc. (RWT) vs TPG RE Finance Trust, Inc. (TRTX)

Redwood Trust, Inc. and TPG RE Finance Trust, Inc. are both Reit Mortgage companies. TPG RE Finance Trust, Inc. is the larger, with a market value of $454.5M against $390.7M — 1.2× the size. Redwood Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; TPG RE Finance Trust, Inc. trades at 10.7×. Redwood Trust, Inc. grew revenue faster over the last twelve months: 27.7% against −2.64%. TPG RE Finance Trust, Inc. has the higher net margin (29.9% vs −0.09%) and the higher return on invested capital (1.00% vs −0.14%). Both pay a dividend; Redwood Trust, Inc. yields more (23.7% vs 16.6%). Across the 19 metrics below, TPG RE Finance Trust, Inc. leads on 13 and Redwood Trust, Inc. on 6.

Valuation

Metric RWT TRTX Reit Mortgage median
P/E n/m 10.72 7.10
P/S 0.28 3.09 1.77
P/B 0.44 0.43 0.55
Price to free cash flow n/m 5.38 5.36
EV/EBITDA n/m 47.03 28.29
EV/Sales 21.05 26.49 15.90
Earnings yield (1.32%) 9.33% 8.10%
Free cash flow yield (3,707.39%) 18.58% 13.00%

Profitability

Metric RWT TRTX Reit Mortgage median
Gross margin 7.87% 100.00% 100.00%
Operating margin (4.47%) 48.82% 35.40%
Net margin (0.09%) 29.93% 11.85%
Free cash flow margin (1,043.65%) 57.48% 26.68%
Return on equity (0.14%) 4.04% 4.81%
Return on assets (0.01%) 0.99% 0.62%
Return on invested capital (0.14%) 1.00% 1.22%

Growth

Metric RWT TRTX Reit Mortgage median
Revenue growth (TTM) 27.74% (2.64%) 4.70%
EPS growth (last fiscal year) (290.62%) (24.00%) 45.25%
Revenue growth, 5-year CAGR 15.64% (3.76%) 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RWT TRTX Reit Mortgage median
Debt to equity 29.42 3.30 3.30
Current ratio 67.49 200.26 1.00
Net debt to EBITDA (447.55) 38.25 18.31

Dividend

Metric RWT TRTX Reit Mortgage median
Dividend yield 23.68% 16.58% 17.34%
Payout ratio — 1.78 1.28

Size

Metric RWT TRTX Reit Mortgage median
Market cap 390.66m 454.48m 479.53m

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