Redwood Trust (RWT) Competitors

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

Which has preferable valuation and earnings, NYMT or RWT?

Redwood Trust has higher revenue and earnings than New York Mortgage Trust. Redwood Trust is trading at a lower price-to-earnings ratio than New York Mortgage 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
New York Mortgage Trust	$401.28M	1.54	-$62.03M	$0.19	35.95
Redwood Trust	$945.16M	0.83	$54M	-$0.64	-9.45

Is NYMT or RWT more profitable?

New York Mortgage Trust has a net margin of 12.50% compared to Redwood Trust's net margin of -6.93%. Redwood Trust's return on equity of 8.70% beat New York Mortgage Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
New York Mortgage Trust	12.50%	7.59%	0.69%
Redwood Trust	-6.93%	8.70%	0.49%

Is NYMT or RWT a better dividend stock?

New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 11.7%. Redwood Trust pays an annual dividend of $0.72 per share and has a dividend yield of 11.9%. New York Mortgage Trust pays out 421.1% 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 pays out -112.5% 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.

Do insiders & institutionals believe in NYMT or RWT?

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

Does the media prefer NYMT or RWT?

In the previous week, New York Mortgage Trust had 3 more articles in the media than Redwood Trust. MarketBeat recorded 3 mentions for New York Mortgage Trust and 0 mentions for Redwood Trust. New York Mortgage Trust's average media sentiment score of 1.89 beat Redwood Trust's score of 0.00 indicating that New York Mortgage Trust is being referred to more favorably in the media.

Company	Overall Sentiment
New York Mortgage Trust	Very Positive
Redwood Trust	Neutral

Do analysts recommend NYMT or RWT?

New York Mortgage Trust currently has a consensus target price of $7.75, suggesting a potential upside of 13.47%. Redwood Trust has a consensus target price of $7.18, suggesting a potential upside of 18.75%. Given Redwood Trust's stronger consensus rating and higher possible upside, analysts plainly believe Redwood Trust is more favorable than New York Mortgage Trust.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Mortgage Trust	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67
Redwood Trust	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.71

Which has more volatility & risk, NYMT or RWT?

New York Mortgage Trust has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Summary

Redwood Trust beats New York Mortgage Trust on 13 of the 20 factors compared between the two stocks.