Redwood Trust (RWT) Competitors

Redwood Trust (NYSE:RWT) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, media sentiment, analyst recommendations, dividends, earnings, institutional ownership and profitability.

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

74.3% of Redwood Trust shares are owned by institutional investors. Comparatively, 54.9% of New York Mortgage Trust shares are owned by institutional investors. 2.7% of Redwood Trust shares are owned by insiders. Comparatively, 1.7% of New York Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the media prefer RWT or NYMT?

In the previous week, Redwood Trust and Redwood Trust both had 3 articles in the media. Redwood Trust's average media sentiment score of 1.70 beat New York Mortgage Trust's score of 1.22 indicating that Redwood Trust is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Redwood Trust	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
New York Mortgage Trust	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is RWT or NYMT a better dividend stock?

Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 12.0%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 11.7%. 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. New York Mortgage Trust pays out -1,333.3% of its earnings in the form of a dividend. 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.

Is RWT or NYMT more profitable?

New York Mortgage Trust has a net margin of 8.50% compared to Redwood Trust's net margin of 3.93%. Redwood Trust's return on equity of 7.82% beat New York Mortgage Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Redwood Trust	3.93%	7.82%	0.49%
New York Mortgage Trust	8.50%	2.51%	0.25%

Which has stronger earnings & valuation, RWT or NYMT?

Redwood Trust has higher revenue and earnings than New York Mortgage Trust. New York Mortgage Trust 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
Redwood Trust	$945.16M	0.85	$54M	$0.22	27.32
New York Mortgage Trust	$401.28M	1.53	-$62.03M	-$0.06	-113.50

Do analysts prefer RWT or NYMT?

Redwood Trust presently has a consensus price target of $7.44, indicating a potential upside of 23.87%. New York Mortgage Trust has a consensus price target of $7.83, indicating a potential upside of 15.03%. Given Redwood Trust's higher probable upside, analysts clearly believe Redwood Trust is more favorable than New York Mortgage Trust.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwood Trust	0 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.67
New York Mortgage Trust	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more volatility and risk, RWT or NYMT?

Redwood Trust has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

Redwood Trust beats New York Mortgage Trust on 15 of the 18 factors compared between the two stocks.