STWD vs. NLY, AGNC, RC, ARI, TWO, PMT, MFA, CIM, ARR, and RWT
Should you be buying Starwood Property Trust stock or one of its competitors? The main competitors of Starwood Property Trust include Annaly Capital Management (NLY), AGNC Investment (AGNC), Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), Chimera Investment (CIM), ARMOUR Residential REIT (ARR), and Redwood Trust (RWT). These companies are all part of the "mortgage reits" industry.
Starwood Property Trust (NYSE:STWD) and Annaly Capital Management (NYSE:NLY) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, media sentiment, community ranking, risk, earnings, profitability, analyst recommendations and valuation.
In the previous week, Annaly Capital Management had 10 more articles in the media than Starwood Property Trust. MarketBeat recorded 16 mentions for Annaly Capital Management and 6 mentions for Starwood Property Trust. Starwood Property Trust's average media sentiment score of 1.72 beat Annaly Capital Management's score of 0.99 indicating that Starwood Property Trust is being referred to more favorably in the media.
Starwood Property Trust has a net margin of 21.20% compared to Annaly Capital Management's net margin of -8.38%. Annaly Capital Management's return on equity of 15.13% beat Starwood Property Trust's return on equity.
Starwood Property Trust has higher earnings, but lower revenue than Annaly Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Starwood Property Trust, indicating that it is currently the more affordable of the two stocks.
Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 10.1%. Annaly Capital Management pays an annual dividend of $2.60 per share and has a dividend yield of 13.2%. Starwood Property Trust pays out 138.1% 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 -268.0% of its earnings in the form of a dividend. Annaly Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
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. 5.8% of Starwood Property Trust shares are owned by insiders. Comparatively, 0.2% of Annaly Capital Management shares are owned by 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.
Annaly Capital Management received 39 more outperform votes than Starwood Property Trust when rated by MarketBeat users. However, 68.79% of users gave Starwood Property Trust an outperform vote while only 55.54% of users gave Annaly Capital Management an outperform vote.
Starwood Property Trust currently has a consensus target price of $21.88, suggesting a potential upside of 15.19%. Annaly Capital Management has a consensus target price of $21.07, suggesting a potential upside of 7.23%. Given Starwood Property Trust's stronger consensus rating and higher possible upside, research analysts clearly believe Starwood Property Trust is more favorable than Annaly Capital Management.
Starwood Property Trust has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Summary
Starwood Property Trust beats Annaly Capital Management on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STWD 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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