RWT vs. DX, NYMT, ARR, CIM, MFA, ACRE, PMT, TWO, RC, and ARI
Should you be buying Redwood Trust stock or one of its competitors? The main competitors of Redwood Trust include Dynex Capital (DX), New York Mortgage Trust (NYMT), ARMOUR Residential REIT (ARR), Chimera Investment (CIM), MFA Financial (MFA), Ares Commercial Real Estate (ACRE), PennyMac Mortgage Investment Trust (PMT), Two Harbors Investment (TWO), Ready Capital (RC), and Apollo Commercial Real Estate Finance (ARI). These companies are all part of the "mortgage reits" industry.
Redwood Trust (NYSE:RWT) and Dynex Capital (NYSE:DX) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, community ranking, institutional ownership, risk, media sentiment, profitability, valuation, dividends and earnings.
74.3% of Redwood Trust shares are held by institutional investors. Comparatively, 38.3% of Dynex Capital shares are held by institutional investors. 2.5% of Redwood Trust shares are held by insiders. Comparatively, 1.0% of Dynex Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Redwood Trust has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 11.2%. Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 13.0%. Redwood Trust pays out -533.3% of its earnings in the form of a dividend. Dynex Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
In the previous week, Dynex Capital had 8 more articles in the media than Redwood Trust. MarketBeat recorded 12 mentions for Dynex Capital and 4 mentions for Redwood Trust. Redwood Trust's average media sentiment score of 0.91 beat Dynex Capital's score of 0.05 indicating that Redwood Trust is being referred to more favorably in the media.
Redwood Trust received 116 more outperform votes than Dynex Capital when rated by MarketBeat users. Likewise, 65.56% of users gave Redwood Trust an outperform vote while only 59.68% of users gave Dynex Capital an outperform vote.
Redwood Trust presently has a consensus price target of $7.66, suggesting a potential upside of 34.08%. Dynex Capital has a consensus price target of $13.31, suggesting a potential upside of 11.12%. Given Redwood Trust's stronger consensus rating and higher probable upside, analysts plainly believe Redwood Trust is more favorable than Dynex Capital.
Redwood Trust has higher earnings, but lower revenue than Dynex Capital. Redwood Trust is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.
Dynex Capital has a net margin of 30.50% compared to Redwood Trust's net margin of -0.28%. Redwood Trust's return on equity of 5.21% beat Dynex Capital's return on equity.
Summary
Redwood Trust beats Dynex Capital on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RWT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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