Redwood Trust (RWT) Competitors

Apollo Commercial Real Estate Finance (NYSE:ARI) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, media sentiment, earnings, valuation and community ranking.

Which has stronger valuation and earnings, ARI or RWT?

Redwood Trust has higher revenue and earnings than Apollo Commercial Real Estate Finance. Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Redwood Trust, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Commercial Real Estate Finance	$179.60M	7.72	-$119.64M	-$0.03	-332.67
Redwood Trust	$256.21M	3.02	$54M	$0.22	26.45

Does the media favor ARI or RWT?

In the previous week, Redwood Trust had 1 more articles in the media than Apollo Commercial Real Estate Finance. MarketBeat recorded 5 mentions for Redwood Trust and 4 mentions for Apollo Commercial Real Estate Finance. Redwood Trust's average media sentiment score of 1.88 beat Apollo Commercial Real Estate Finance's score of 0.84 indicating that Redwood Trust is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Apollo Commercial Real Estate Finance	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Redwood Trust	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do analysts prefer ARI or RWT?

Apollo Commercial Real Estate Finance currently has a consensus price target of $10.13, suggesting a potential upside of 1.45%. Redwood Trust has a consensus price target of $7.44, suggesting a potential upside of 27.91%. Given Redwood Trust's stronger consensus rating and higher possible upside, analysts plainly believe Redwood Trust is more favorable than Apollo Commercial Real Estate Finance.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Commercial Real Estate Finance	0 Sell rating(s)	3 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.40
Redwood Trust	0 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.67

Is ARI or RWT more profitable?

Redwood Trust has a net margin of 9.35% compared to Apollo Commercial Real Estate Finance's net margin of -39.40%. Apollo Commercial Real Estate Finance's return on equity of 9.37% beat Redwood Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Apollo Commercial Real Estate Finance	-39.40%	9.37%	2.03%
Redwood Trust	9.35%	6.91%	0.47%

Is ARI or RWT a better dividend stock?

Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 10.0%. Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 12.4%. Apollo Commercial Real Estate Finance pays out -3,333.3% of its earnings in the form of a dividend. Redwood Trust pays out 327.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Redwood Trust has increased its dividend for 1 consecutive years. Redwood Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community favor ARI or RWT?

Redwood Trust received 104 more outperform votes than Apollo Commercial Real Estate Finance when rated by MarketBeat users. Likewise, 64.89% of users gave Redwood Trust an outperform vote while only 57.17% of users gave Apollo Commercial Real Estate Finance an outperform vote.

Company	Underperform	Outperform
Apollo Commercial Real Estate Finance	Outperform Votes 323 57.17%	Underperform Votes 242 42.83%
Redwood Trust	Outperform Votes 427 64.89%	Underperform Votes 231 35.11%

Which has more volatility & risk, ARI or RWT?

Apollo Commercial Real Estate Finance has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Do institutionals and insiders have more ownership in ARI or RWT?

54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. Comparatively, 74.3% of Redwood Trust shares are held by institutional investors. 0.7% of Apollo Commercial Real Estate Finance shares are held by insiders. Comparatively, 2.7% of Redwood Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Redwood Trust beats Apollo Commercial Real Estate Finance on 17 of the 22 factors compared between the two stocks.