Redwood Trust (RWT) Competitors

Redwood Trust (NYSE:RWT) and Dynex Capital (NYSE:DX) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their media sentiment, profitability, institutional ownership, valuation, earnings, dividends, community ranking, analyst recommendations and risk.

Which has better valuation & earnings, RWT or DX?

Redwood Trust has higher revenue and earnings 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwood Trust	$724M	1.05	-$2.27M	-$0.12	-48.00
Dynex Capital	$207.52M	3.39	-$6.13M	$1.17	10.16

Is RWT or DX more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
Redwood Trust	-0.28%	5.21%	0.42%
Dynex Capital	30.50%	-7.51%	-0.94%

Do insiders & institutionals hold more shares of RWT or DX?

74.3% of Redwood Trust shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 2.5% of Redwood Trust shares are owned by company insiders. Comparatively, 2.5% of Dynex Capital shares are owned by company 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.

Does the MarketBeat Community favor RWT or DX?

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.

Company	Underperform	Outperform
Redwood Trust	Outperform Votes 415 65.56%	Underperform Votes 218 34.44%
Dynex Capital	Outperform Votes 299 59.68%	Underperform Votes 202 40.32%

Which has more volatility & risk, RWT or DX?

Redwood Trust has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Does the media prefer RWT or DX?

In the previous week, Dynex Capital had 13 more articles in the media than Redwood Trust. MarketBeat recorded 18 mentions for Dynex Capital and 5 mentions for Redwood Trust. Redwood Trust's average media sentiment score of 1.34 beat Dynex Capital's score of 0.08 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	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Dynex Capital	1 Very Positive mention(s)	4 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is RWT or DX a better dividend stock?

Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 11.1%. Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 13.1%. 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.

Do analysts prefer RWT or DX?

Redwood Trust currently has a consensus price target of $7.66, indicating a potential upside of 32.92%. Dynex Capital has a consensus price target of $13.31, indicating a potential upside of 12.01%. Given Redwood Trust's stronger consensus rating and higher possible upside, equities analysts plainly believe Redwood Trust is more favorable than Dynex Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwood Trust	0 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.75
Dynex Capital	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60

Summary

Redwood Trust beats Dynex Capital on 14 of the 20 factors compared between the two stocks.