Redwood Trust (NYSE: RWT) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it contrast to its rivals? We will compare Redwood Trust to related businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, analyst recommendations and dividends.

Dividends

Redwood Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.7%. Redwood Trust pays out 64.0% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Redwood Trust and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Redwood Trust $215.70 million N/A 9.57
Redwood Trust Competitors $626.30 million $243.53 million 1.56

Redwood Trust’s rivals have higher revenue and earnings than Redwood Trust. Redwood Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Redwood Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Redwood Trust 46.04% 12.02% 2.50%
Redwood Trust Competitors 49.20% 10.70% 2.78%

Volatility & Risk

Redwood Trust has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Redwood Trust’s rivals have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Redwood Trust and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Redwood Trust 0 0 0 0 N/A
Redwood Trust Competitors 110 828 838 31 2.44

As a group, “Mortgage REITs” companies have a potential upside of 1.71%. Given Redwood Trust’s rivals higher probable upside, analysts clearly believe Redwood Trust has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

84.7% of Redwood Trust shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are owned by institutional investors. 2.3% of Redwood 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Redwood Trust rivals beat Redwood Trust on 6 of the 11 factors compared.

About Redwood Trust

Redwood Trust, Inc., through its subsidiaries, focuses on investing in mortgage and other real estate related assets. The Company is engaged in mortgage banking activities. The Company operates through three segments: Residential Investments, Residential Mortgage Banking and Commercial. The Residential Investments segment includes a portfolio of investments in residential mortgage-backed securities (RMBS) retained from its Sequoia securitizations. The Residential Mortgage Banking segment consists of operating a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. Its Commercial segment consists of investments in multi-family securities and commercial mortgage-backed securities, as well as a remaining commercial loan investment following the sale of the remainder of its commercial mezzanine loan portfolio.

Receive News & Ratings for Redwood Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Redwood Trust Inc. and related companies with MarketBeat.com's FREE daily email newsletter.