Starwood Property Trust (NYSE: STWD) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it weigh in compared to its competitors? We will compare Starwood Property Trust to similar businesses based off the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

68.6% of Starwood Property Trust shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Mortgage REITs” companies are owned by institutional investors. 2.4% of Starwood Property Trust shares are owned by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Starwood Property Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Starwood Property Trust $546.16 million N/A 12.48
Starwood Property Trust Competitors $320.94 million $123.24 million 1.73

Starwood Property Trust has higher revenue, but lower earnings than its competitors. Starwood Property Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for Starwood Property Trust and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starwood Property Trust 0 1 2 0 2.67
Starwood Property Trust Competitors 197 1024 911 41 2.37

Starwood Property Trust currently has a consensus price target of $24.50, suggesting a potential upside of 11.52%. All “Mortgage REITs” companies have a potential upside of 3.97%. Given Starwood Property Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Starwood Property Trust is more favorable than its competitors.

Profitability

This table compares Starwood Property Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starwood Property Trust 55.89% 11.39% 0.69%
Starwood Property Trust Competitors 49.05% 10.75% 2.77%

Volatility & Risk

Starwood Property Trust has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Starwood Property Trust’s competitors have a beta of 0.72, suggesting that their average share price is 28% less volatile than the S&P 500.

Dividends

Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 8.7%. Starwood Property Trust pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.2% and pay out 80.6% of their earnings in the form of a dividend. Starwood Property Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Starwood Property Trust beats its competitors on 8 of the 14 factors compared.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc. is a real estate investment trust. The Company operates through three business segments: Real estate lending (the Lending Segment), which engages primarily in originating, acquiring, financing and managing commercial first mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities, and other real estate and real estate-related debt investments; Real estate investing and servicing (the Investing and Servicing Segment), which includes a servicing business in the United States that manages and works out problem assets; an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, and a mortgage loan business, and Real estate property (the Property Segment), which engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties.

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