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 stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, media sentiment, earnings, profitability, risk and dividends.

Which has preferable 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	0.86	$54M	$0.22	27.91
New York Mortgage Trust	$401.28M	1.53	-$62.03M	-$0.06	-113.67

Which has more volatility & risk, RWT or NYMT?

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

Do analysts recommend RWT or NYMT?

Redwood Trust currently has a consensus price target of $7.44, indicating a potential upside of 21.25%. New York Mortgage Trust has a consensus price target of $7.83, indicating a potential upside of 14.86%. Given Redwood Trust's higher probable upside, research 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
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

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%

Do insiders and institutionals believe 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Does the media refer more to RWT or NYMT?

In the previous week, New York Mortgage Trust had 1 more articles in the media than Redwood Trust. MarketBeat recorded 3 mentions for New York Mortgage Trust and 2 mentions for Redwood Trust. Redwood Trust's average media sentiment score of 1.70 beat New York Mortgage Trust's score of 1.40 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	2 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 11.7%. 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 raised its dividend for 1 consecutive years. New York Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Redwood Trust beats New York Mortgage Trust on 14 of the 19 factors compared between the two stocks.