Starwood Property Trust (STWD) Competitors

Starwood Property Trust (NYSE:STWD) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, community ranking, media sentiment, valuation, dividends, profitability, risk and analyst recommendations.

Is STWD or NLY a better dividend stock?

Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 9.4%. Annaly Capital Management pays an annual dividend of $2.80 per share and has a dividend yield of 14.5%. Starwood Property Trust pays out 202.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Capital Management pays out 314.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Capital Management has increased its dividend for 2 consecutive years. Annaly Capital Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do insiders and institutionals hold more shares of STWD or NLY?

49.8% of Starwood Property Trust shares are owned by institutional investors. Comparatively, 51.6% of Annaly Capital Management shares are owned by institutional investors. 5.4% of Starwood Property Trust shares are owned by company insiders. Comparatively, 0.2% of Annaly Capital Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Which has stronger earnings and valuation, STWD or NLY?

Annaly Capital Management has higher revenue and earnings than Starwood Property Trust. Starwood Property Trust is trading at a lower price-to-earnings ratio than Annaly Capital Management, 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
Starwood Property Trust	$844.65M	8.22	$339.21M	$0.95	21.53
Annaly Capital Management	$898.19M	12.89	$1.00B	$0.89	21.77

Do analysts recommend STWD or NLY?

Starwood Property Trust presently has a consensus target price of $21.83, suggesting a potential upside of 6.74%. Annaly Capital Management has a consensus target price of $21.00, suggesting a potential upside of 8.39%. Given Annaly Capital Management's stronger consensus rating and higher probable upside, analysts plainly believe Annaly Capital Management is more favorable than Starwood Property Trust.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starwood Property Trust	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.71
Annaly Capital Management	0 Sell rating(s)	2 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.80

Is STWD or NLY more profitable?

Annaly Capital Management has a net margin of 20.70% compared to Starwood Property Trust's net margin of 18.82%. Annaly Capital Management's return on equity of 14.95% beat Starwood Property Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Starwood Property Trust	18.82%	9.93%	1.00%
Annaly Capital Management	20.70%	14.95%	1.60%

Does the MarketBeat Community prefer STWD or NLY?

Annaly Capital Management received 46 more outperform votes than Starwood Property Trust when rated by MarketBeat users. However, 68.68% of users gave Starwood Property Trust an outperform vote while only 56.14% of users gave Annaly Capital Management an outperform vote.

Company	Underperform	Outperform
Starwood Property Trust	Outperform Votes 443 68.68%	Underperform Votes 202 31.32%
Annaly Capital Management	Outperform Votes 489 56.14%	Underperform Votes 382 43.86%

Does the media prefer STWD or NLY?

In the previous week, Annaly Capital Management had 7 more articles in the media than Starwood Property Trust. MarketBeat recorded 10 mentions for Annaly Capital Management and 3 mentions for Starwood Property Trust. Starwood Property Trust's average media sentiment score of 1.86 beat Annaly Capital Management's score of 1.00 indicating that Starwood Property Trust is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Starwood Property Trust	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Annaly Capital Management	7 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, STWD or NLY?

Starwood Property Trust has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

Annaly Capital Management beats Starwood Property Trust on 14 of the 21 factors compared between the two stocks.