RWT vs. NYMT, ARR, MFA, DX, PMT, ACRE, IVR, TWO, CIM, and ARI
Should you be buying Redwood Trust stock or one of its competitors? The main competitors of Redwood Trust include New York Mortgage Trust (NYMT), ARMOUR Residential REIT (ARR), MFA Financial (MFA), Dynex Capital (DX), PennyMac Mortgage Investment Trust (PMT), Ares Commercial Real Estate (ACRE), Invesco Mortgage Capital (IVR), Two Harbors Investment (TWO), Chimera Investment (CIM), and Apollo Commercial Real Estate Finance (ARI). These companies are all part of the "mortgage reits" industry.
Redwood Trust (NYSE:RWT) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, media sentiment, valuation, risk, earnings, community ranking, dividends, analyst recommendations and institutional ownership.
Redwood Trust currently has a consensus target price of $8.56, indicating a potential upside of 25.92%. New York Mortgage Trust has a consensus target price of $12.67, indicating a potential upside of 55.42%. Given New York Mortgage Trust's higher probable upside, analysts clearly believe New York Mortgage Trust is more favorable than Redwood Trust.
Redwood Trust has a net margin of -12.13% compared to New York Mortgage Trust's net margin of -64.46%. Redwood Trust's return on equity of 3.76% beat New York Mortgage Trust's return on equity.
Redwood Trust received 72 more outperform votes than New York Mortgage Trust when rated by MarketBeat users. Likewise, 65.43% of users gave Redwood Trust an outperform vote while only 56.83% of users gave New York Mortgage Trust an outperform vote.
Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 9.4%. New York Mortgage Trust pays an annual dividend of $1.20 per share and has a dividend yield of 14.7%. Redwood Trust pays out -78.0% of its earnings in the form of a dividend. New York Mortgage Trust pays out -56.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Redwood Trust has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.
69.9% of Redwood Trust shares are held by institutional investors. Comparatively, 53.0% of New York Mortgage Trust shares are held by institutional investors. 2.2% of Redwood Trust shares are held by company insiders. Comparatively, 1.2% of New York Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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.
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. Redwood Trust's average media sentiment score of 1.71 beat New York Mortgage Trust's score of 1.47 indicating that Redwood Trust is being referred to more favorably in the media.
Summary
Redwood Trust beats New York Mortgage Trust 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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