RWT vs. DX, NYMT, ARR, CIM, MFA, ACRE, PMT, TWO, RC, and ARI
Should you be buying Redwood Trust stock or one of its competitors? The main competitors of Redwood Trust include Dynex Capital (DX), New York Mortgage Trust (NYMT), ARMOUR Residential REIT (ARR), Chimera Investment (CIM), MFA Financial (MFA), Ares Commercial Real Estate (ACRE), PennyMac Mortgage Investment Trust (PMT), Two Harbors Investment (TWO), Ready Capital (RC), and Apollo Commercial Real Estate Finance (ARI). These companies are all part of the "mortgage reits" industry.
Dynex Capital (NYSE:DX) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their community ranking, media sentiment, profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 13.1%. Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 11.2%. 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. Redwood Trust pays out -533.3% of its earnings in the form of a dividend.
38.3% of Dynex Capital shares are owned by institutional investors. Comparatively, 74.3% of Redwood Trust shares are owned by institutional investors. 2.5% of Dynex Capital shares are owned by company insiders. Comparatively, 2.5% of Redwood Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
In the previous week, Dynex Capital had 14 more articles in the media than Redwood Trust. MarketBeat recorded 17 mentions for Dynex Capital and 3 mentions for Redwood Trust. Dynex Capital's average media sentiment score of 0.97 beat Redwood Trust's score of 0.05 indicating that Redwood Trust is being referred to more favorably in the news media.
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.
Dynex Capital presently has a consensus price target of $13.31, suggesting a potential upside of 11.68%. Redwood Trust has a consensus price target of $7.66, suggesting a potential upside of 33.85%. Given Dynex Capital's stronger consensus rating and higher possible upside, analysts plainly believe Redwood Trust is more favorable than Dynex Capital.
Dynex Capital has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.
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.
Dynex Capital has a net margin of 30.50% compared to Dynex Capital's net margin of -0.28%. Dynex Capital's return on equity of 5.21% beat Redwood Trust's return on equity.
Summary
Redwood Trust beats Dynex Capital on 14 of the 20 factors compared between the two stocks.
Get Redwood Trust News Delivered to You Automatically
Sign up to receive the latest news and ratings for RWT and its competitors with MarketBeat's FREE daily newsletter.
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.
Redwood Trust Competitors List
Related Companies and Tools
