Comprehensive Stock Comparison
Compare PennyMac Mortgage Investment Trust (PMTU) vs Ready Capital Corporation 5.75% (RCC) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PMTU | -30.5% revenue growth vs RCC's -93.0% |
| Quality / Margins | PMTU | 14.6% net margin vs RCC's -15.9% |
| Stability / Safety | RCC | Beta 0.00 vs PMTU's 0.03, lower leverage |
| Dividends | PMTU | 6.3% yield, 1-year raise streak, vs RCC's 4.8% |
| Momentum (1Y) | PMTU | +8.0% vs RCC's +7.7% |
| Efficiency (ROA) | PMTU | 0.7% ROA vs RCC's -3.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
PennyMac Mortgage Investment Trust is a mortgage real estate investment trust that invests in residential mortgage loans and mortgage-related assets. It generates income primarily through correspondent lending—purchasing and reselling newly originated loans—and through credit-sensitive strategies like distressed loan investments and real estate holdings, with interest rate hedging activities providing additional revenue. The company's competitive advantage lies in its specialized mortgage expertise and vertically integrated platform that spans loan origination, servicing, and investment management.
Ready Capital Corporation is a real estate finance company that originates, acquires, and manages small balance commercial loans and SBA-guaranteed business loans. It generates revenue primarily through interest income from its loan portfolio—spanning commercial real estate, small business lending, and residential mortgages—supplemented by loan origination fees and servicing income. The company's competitive advantage lies in its specialized focus on the underserved small balance commercial loan market and its vertically integrated origination-to-servicing platform.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PMTU leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). RCC leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
PMTU and RCC operate at a comparable scale, with $839M and -$9M in trailing revenue. PMTU is the more profitable business, keeping 14.6% of every revenue dollar as net income compared to RCC's -15.9%. On growth, PMTU holds the edge at +84.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| RevenueTrailing 12 months | $839M | -$9M |
| EBITDAEarnings before interest/tax | $1.2B | -$95M |
| Net IncomeAfter-tax profit | $122M | -$311M |
| Free Cash FlowCash after capex | -$5.5B | $366M |
| Gross MarginGross profit ÷ Revenue | +84.4% | +100.0% |
| Operating MarginEBIT ÷ Revenue | +70.9% | — |
| Net MarginNet income ÷ Revenue | +14.6% | -15.9% |
| FCF MarginFCF ÷ Revenue | -6.6% | -187.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +84.2% | -69.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +52.8% | -86.2% |
Valuation Metrics
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| Market CapShares × price | $2.2B | $4.1B |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $10.0B |
| Trailing P/EPrice ÷ TTM EPS | 18.72x | -9.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.52x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 13.64x | — |
| Price / SalesMarket cap ÷ Revenue | 4.41x | 149.02x |
| Price / BookPrice ÷ Book value/share | 1.15x | 2.21x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
PMTU delivers a 6.5% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-17 for RCC. RCC carries lower financial leverage with a 3.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to PMTU's 6.26x. On the Piotroski fundamental quality scale (0–9), PMTU scores 2/9 vs RCC's 1/9, reflecting mixed financial health.
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| ROE (TTM)Return on equity | +6.5% | -16.6% |
| ROA (TTM)Return on assets | +0.7% | -3.7% |
| ROICReturn on invested capital | +1.9% | — |
| ROCEReturn on capital employed | +4.6% | — |
| Piotroski ScoreFundamental quality 0–9 | 2 | 1 |
| Debt / EquityFinancial leverage | 6.26x | 3.12x |
| Net DebtTotal debt minus cash | $11.8B | $5.9B |
| Cash & Equiv.Liquid assets | $338M | $144M |
| Total DebtShort + long-term debt | $12.1B | $6.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.46x | — |
Total Returns (with DRIP)
A $10,000 investment in PMTU five years ago would be worth $12,464 today (with dividends reinvested), compared to $12,332 for RCC. Over the past 12 months, PMTU leads with a +8.0% total return vs RCC's +7.7%. The 3-year compound annual growth rate (CAGR) favors RCC at 7.9% vs PMTU's 7.6% — a key indicator of consistent wealth creation.
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| YTD ReturnYear-to-date | +0.8% | +1.2% |
| 1-Year ReturnPast 12 months | +8.0% | +7.7% |
| 3-Year ReturnCumulative with dividends | +24.6% | +25.7% |
| 5-Year ReturnCumulative with dividends | +24.6% | +23.3% |
| 10-Year ReturnCumulative with dividends | +24.6% | +27.5% |
| CAGR (3Y)Annualised 3-year return | +7.6% | +7.9% |
Risk & Volatility
RCC is the less volatile stock with a 0.00 beta — it tends to amplify market swings less than PMTU's 0.03 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PMTU currently trades 97.6% from its 52-week high vs RCC's 93.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.03x | 0.00x |
| 52-Week HighHighest price in past year | $26.26 | $26.87 |
| 52-Week LowLowest price in past year | $24.46 | $23.97 |
| % of 52W HighCurrent price vs 52-week peak | +97.6% | +93.2% |
| RSI (14)Momentum oscillator 0–100 | 50.1 | 57.3 |
| Avg Volume (50D)Average daily shares traded | 2K | 33K |
Analyst Outlook
For income investors, PMTU offers the higher dividend yield at 6.26% vs RCC's 4.83%.
| Metric | PMTUPennyMac Mortgage… | RCCReady Capital Cor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | — |
| Price TargetConsensus 12-month target | — | — |
| # AnalystsCovering analysts | — | — |
| Dividend YieldAnnual dividend ÷ price | +6.3% | +4.8% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $1.60 | $1.21 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 23 | Feb 26 | Change |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 100 | 104.5 | +4.5% |
| Ready Capital Corpo… (RCC) | 100 | 104.88 | +4.9% |
PennyMac Mortgage I… (PMTU) returned +25% over 5 years vs Ready Capital Corpo… (RCC)'s +23%. A $10,000 investment in PMTU 5 years ago would be worth $12,464 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | $292M | $505M | +72.6% |
| Ready Capital Corpo… (RCC) | $58M | $27M | -52.8% |
PennyMac Mortgage Investment Trust's revenue grew from $292M (2015) to $505M (2024) — a 6.2% CAGR. Ready Capital Corporation 5.75%'s revenue grew from $58M (2015) to $27M (2024) — a -8.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 30.8% | 31.9% | +3.5% |
| Ready Capital Corpo… (RCC) | -2.2% | -15.9% | -632.6% |
PennyMac Mortgage Investment Trust's net margin went from 31% (2015) to 32% (2024). Ready Capital Corporation 5.75%'s net margin went from -2% (2015) to -16% (2024).
Chart 4P/E Ratio History — 3 Years
| Stock | 2021 | 2023 | Change |
|---|---|---|---|
| Ready Capital Corpo… (RCC) | 16.8 | 10.8 | -35.7% |
Ready Capital Corporation 5.75% has traded in a 11x–17x P/E range over 3 years; current trailing P/E is ~-10x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 1.16 | 1.37 | +18.1% |
| Ready Capital Corpo… (RCC) | -0.04 | -2.63 | -6393.8% |
PennyMac Mortgage Investment Trust's EPS grew from $1.16 (2015) to $1.37 (2024) — a 2% CAGR. Ready Capital Corporation 5.75%'s EPS grew from $-0.04 (2015) to $-2.63 (2024).
Chart 6Free Cash Flow — 5 Years
PennyMac Mortgage Investment Trust generated $-3B FCF in 2024 (+2% vs 2021). Ready Capital Corporation 5.75% generated $-51M FCF in 2024 (+99% vs 2021).
PMTU vs RCC: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is PMTU or RCC a better buy right now?
PennyMac Mortgage Investment Trust (PMTU) offers the better valuation at 18.7x trailing P/E (16.5x forward), making it the more compelling value choice. 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 — PMTU or RCC?
Over the past 5 years, PennyMac Mortgage Investment Trust (PMTU) delivered a total return of +24.6%, compared to +23.3% for Ready Capital Corporation 5.75% (RCC). A $10,000 investment in PMTU five years ago would be worth approximately $12K today (assuming dividends reinvested). Over 10 years, the gap is even starker: RCC returned +27.5% versus PMTU's +24.6%. 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 — PMTU or RCC?
By beta (market sensitivity over 5 years), Ready Capital Corporation 5.75% (RCC) is the lower-risk stock at 0.00β versus PennyMac Mortgage Investment Trust's 0.03β — meaning PMTU is approximately 3757% more volatile than RCC relative to the S&P 500. On balance sheet safety, Ready Capital Corporation 5.75% (RCC) carries a lower debt/equity ratio of 3% versus 6% for PennyMac Mortgage Investment Trust — giving it more financial flexibility in a downturn.
04Which has better profit margins — PMTU or RCC?
PennyMac Mortgage Investment Trust (PMTU) is the more profitable company, earning 31.9% net margin versus -1593.0% for Ready Capital Corporation 5.75% — meaning it keeps 31.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PMTU leads at 65.7% versus 0.0% for RCC. At the gross margin level — before operating expenses — RCC leads at 100.0%, 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.
05Which pays a better dividend — PMTU or RCC?
All stocks in this comparison pay dividends. PennyMac Mortgage Investment Trust (PMTU) offers the highest yield at 6.3%, versus 4.8% for Ready Capital Corporation 5.75% (RCC).
06Is PMTU or RCC better for a retirement portfolio?
For long-horizon retirement investors, Ready Capital Corporation 5.75% (RCC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.00), 4.8% yield). Both have compounded well over 10 years (RCC: +27.5%, PMTU: +24.6%), 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.
07What are the main differences between PMTU and RCC?
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. 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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