RWTN
Redwood Trust, Inc. 9.125% Seni
REIT - Mortgage
Market Cap$3.18B
5Y Perf.+0.4%
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Stock Comparison
RWTN vs RWT
Revenue, margins, valuation, and 5-year total return — side by side.
RWT
Redwood Trust, Inc.
REIT - Mortgage
Market Cap$697M
5Y Perf.-9.0%
RWTN vs RWT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWTN | RWT |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $3.18B | $697M |
| Revenue (TTM) | $977M | $1.06B |
| Net Income (TTM) | $-70M | $-70M |
| Gross Margin | 95.5% | 24.0% |
| Operating Margin | 77.5% | 24.1% |
| Forward P/E | 32.8x | 7.2x |
| Total Debt | $22.29B | $22.16B |
| Cash & Equiv. | $256M | $256M |
RWTN vs RWT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWTN
RWT
| Stock | Feb 24 | May 26 | Return |
|---|---|---|---|
| Redwood Trust, Inc.… (RWTN) | 100 | 100.4 | +0.4% |
| Redwood Trust, Inc. (RWT) | 100 | 91.0 | -9.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWTN vs RWT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: RWT leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Redwood Trust, Inc. 9.125% Seni is the stronger pick specifically for capital preservation and lower volatility and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
RWTN
Redwood Trust, Inc. 9.125% Seni
The Real Estate Income Play
RWTN is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 1 yrs, beta 0.59, yield 3.4%
- 21.1% 10Y total return vs RWT's 11.5%
- Lower volatility, beta 0.59
Best for: income & stability and long-term compounding
RWT
Redwood Trust, Inc.
The Real Estate Income Play
RWT carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 356.5%, EPS growth -296.9%
- 356.5% FFO/revenue growth vs RWTN's 13.3%
- Lower P/E (7.2x vs 32.8x)
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RWT | 356.5% FFO/revenue growth vs RWTN's 13.3% |
| Value | RWT | Lower P/E (7.2x vs 32.8x) |
| Quality / Margins | RWT | -6.6% margin vs RWTN's -7.2% |
| Stability / Safety | RWTN | Beta 0.59 vs RWT's 0.82 |
| Dividends | RWT | 13.6% yield, 1-year raise streak, vs RWTN's 3.4% |
| Momentum (1Y) | RWTN | +12.7% vs RWT's +7.9% |
| Efficiency (ROA) | RWT | -0.3% ROA vs RWTN's -0.3%, ROIC 3.9% vs -0.1% |
RWTN vs RWT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRWTLAGGINGRWTN
RWTNRedwood Trust, Inc. 9…
2leads
RWTRedwood Trust, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs RWTNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
RWT3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
RWT9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
RWTN4/6
Risk & VolatilityBeta, volatility, and downside exposure
RWTN2/2
Analyst OutlookRatings, price targets, and dividends
RWT1/1
Income & Cash Flow (Last 12 Months)
Evenly matched — RWTN and RWT each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RWT and RWTN operate at a comparable scale, with $1.1B and $977M in trailing revenue. Profitability is closely matched — net margins range from -6.6% (RWT) to -7.2% (RWTN). On growth, RWT holds the edge at +5.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| RevenueTrailing 12 months | $977M | $1.1B |
| EBITDAEarnings before interest/tax | $765M | $266M |
| Net IncomeAfter-tax profit | -$70M | -$70M |
| Free Cash FlowCash after capex | $5.8B | -$10.1B |
| Gross MarginGross profit ÷ Revenue | +95.5% | +24.0% |
| Operating MarginEBIT ÷ Revenue | +77.5% | +24.1% |
| Net MarginNet income ÷ Revenue | -7.2% | -6.6% |
| FCF MarginFCF ÷ Revenue | +5.9% | -9.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +184.3% | +5.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -6.5% | +2.8% |
Evenly matched — RWTN and RWT each lead in 3 of 6 comparable metrics.
Valuation Metrics
RWT leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| Market CapShares × price | $3.2B | $697M |
| Enterprise ValueMkt cap + debt − cash | $25.2B | $22.6B |
| Trailing P/EPrice ÷ TTM EPS | -41.10x | -8.86x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.82x | 7.19x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 21.22x |
| Price / SalesMarket cap ÷ Revenue | 11.59x | 0.63x |
| Price / BookPrice ÷ Book value/share | 2.93x | 0.74x |
| Price / FCFMarket cap ÷ FCF | — | — |
RWT leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
RWT leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
RWT delivers a -6.6% return on equity — every $100 of shareholder capital generates $-7 in annual profit, vs $-7 for RWTN. RWT carries lower financial leverage with a 22.56x debt-to-equity ratio, signaling a more conservative balance sheet compared to RWTN's 22.68x. On the Piotroski fundamental quality scale (0–9), RWT scores 4/9 vs RWTN's 1/9, reflecting mixed financial health.
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| ROE (TTM)Return on equity | -6.6% | -6.6% |
| ROA (TTM)Return on assets | -0.3% | -0.3% |
| ROICReturn on invested capital | -0.1% | +3.9% |
| ROCEReturn on capital employed | -0.1% | +6.1% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 4 |
| Debt / EquityFinancial leverage | 22.68x | 22.56x |
| Net DebtTotal debt minus cash | $22.0B | $21.9B |
| Cash & Equiv.Liquid assets | $256M | $256M |
| Total DebtShort + long-term debt | $22.3B | $22.2B |
| Interest CoverageEBIT ÷ Interest expense | -1.48x | 0.96x |
RWT leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
RWTN leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RWTN five years ago would be worth $12,106 today (with dividends reinvested), compared to $8,326 for RWT. Over the past 12 months, RWTN leads with a +12.7% total return vs RWT's +7.9%. The 3-year compound annual growth rate (CAGR) favors RWT at 9.6% vs RWTN's 6.6% — a key indicator of consistent wealth creation.
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| YTD ReturnYear-to-date | +4.4% | +1.9% |
| 1-Year ReturnPast 12 months | +12.7% | +7.9% |
| 3-Year ReturnCumulative with dividends | +21.1% | +31.6% |
| 5-Year ReturnCumulative with dividends | +21.1% | -16.7% |
| 10-Year ReturnCumulative with dividends | +21.1% | +11.5% |
| CAGR (3Y)Annualised 3-year return | +6.6% | +9.6% |
RWTN leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
RWTN leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
RWTN is the less volatile stock with a 0.59 beta — it tends to amplify market swings less than RWT's 0.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RWTN currently trades 98.9% from its 52-week high vs RWT's 80.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.59x | 0.82x |
| 52-Week HighHighest price in past year | $25.77 | $6.97 |
| 52-Week LowLowest price in past year | $8.97 | $5.00 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +80.1% |
| RSI (14)Momentum oscillator 0–100 | 65.3 | 42.2 |
| Avg Volume (50D)Average daily shares traded | 8K | 1.4M |
RWTN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
RWT leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
For income investors, RWT offers the higher dividend yield at 13.62% vs RWTN's 3.44%.
| Metric | RWTNRedwood Trust, In… | RWTRedwood Trust, In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $6.50 |
| # AnalystsCovering analysts | — | 23 |
| Dividend YieldAnnual dividend ÷ price | +3.4% | +13.6% |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | $0.88 | $0.76 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | +7.4% |
RWT leads this category, winning 1 of 1 comparable metric.
Key Takeaway
RWT leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). RWTN leads in 2 (Total Returns, Risk & Volatility). 1 tied.
Best OverallRedwood Trust, Inc. (RWT)Leads 3 of 6 categories
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RWTN vs RWT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RWTN or RWT a better buy right now?
For growth investors, Redwood Trust, Inc.
(RWT) is the stronger pick with 356. 5% revenue growth year-over-year, versus 13. 3% for Redwood Trust, Inc. 9. 125% Seni (RWTN). Analysts rate Redwood Trust, Inc. (RWT) a "Hold" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — RWTN or RWT?
Over the past 5 years, Redwood Trust, Inc.
9. 125% Seni (RWTN) delivered a total return of +21. 1%, compared to -16. 7% for Redwood Trust, Inc. (RWT). Over 10 years, the gap is even starker: RWTN returned +21. 1% versus RWT's +11. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — RWTN or RWT?
By beta (market sensitivity over 5 years), Redwood Trust, Inc.
9. 125% Seni (RWTN) is the lower-risk stock at 0. 59β versus Redwood Trust, Inc. 's 0. 82β — meaning RWT is approximately 40% more volatile than RWTN relative to the S&P 500. On balance sheet safety, Redwood Trust, Inc. (RWT) carries a lower debt/equity ratio of 23% versus 23% for Redwood Trust, Inc. 9. 125% Seni — giving it more financial flexibility in a downturn.
04Which is growing faster — RWTN or RWT?
By revenue growth (latest reported year), Redwood Trust, Inc.
(RWT) is pulling ahead at 356. 5% versus 13. 3% for Redwood Trust, Inc. 9. 125% Seni (RWTN). On earnings-per-share growth, the picture is similar: Redwood Trust, Inc. 9. 125% Seni grew EPS -293. 8% year-over-year, compared to -296. 9% for Redwood Trust, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — RWTN or RWT?
Redwood Trust, Inc.
(RWT) is the more profitable company, earning -6. 3% net margin versus -25. 5% for Redwood Trust, Inc. 9. 125% Seni — meaning it keeps -6. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RWT leads at 95. 3% versus -9. 7% for RWTN. At the gross margin level — before operating expenses — RWT leads at 95. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is RWTN or RWT more undervalued right now?
On forward earnings alone, Redwood Trust, Inc.
(RWT) trades at 7. 2x forward P/E versus 32. 8x for Redwood Trust, Inc. 9. 125% Seni — 25. 6x cheaper on a one-year earnings basis.
07Which pays a better dividend — RWTN or RWT?
All stocks in this comparison pay dividends.
Redwood Trust, Inc. (RWT) offers the highest yield at 13. 6%, versus 3. 4% for Redwood Trust, Inc. 9. 125% Seni (RWTN).
08Is RWTN or RWT better for a retirement portfolio?
For long-horizon retirement investors, Redwood Trust, Inc.
9. 125% Seni (RWTN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 59), 3. 4% yield). Both have compounded well over 10 years (RWTN: +21. 1%, RWT: +11. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between RWTN and RWT?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: RWTN is a small-cap income-oriented stock; RWT is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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