Comprehensive Stock Comparison
Compare Ready Capital Corporation 5.75% (RCC) vs PennyMac Mortgage Investment Trust (PMTU) 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
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.
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.
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 | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| RevenueTrailing 12 months | -$9M | $839M |
| EBITDAEarnings before interest/tax | -$95M | $1.2B |
| Net IncomeAfter-tax profit | -$311M | $122M |
| Free Cash FlowCash after capex | $366M | -$5.5B |
| Gross MarginGross profit ÷ Revenue | +100.0% | +84.4% |
| Operating MarginEBIT ÷ Revenue | — | +70.9% |
| Net MarginNet income ÷ Revenue | -15.9% | +14.6% |
| FCF MarginFCF ÷ Revenue | -187.2% | -6.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -69.8% | +84.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -86.2% | +52.8% |
Valuation Metrics
| Metric | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| Market CapShares × price | $4.1B | $2.2B |
| Enterprise ValueMkt cap + debt − cash | $10.0B | $14.0B |
| Trailing P/EPrice ÷ TTM EPS | -9.52x | 18.72x |
| 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 | 149.02x | 4.41x |
| Price / BookPrice ÷ Book value/share | 2.21x | 1.15x |
| 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 | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| ROE (TTM)Return on equity | -16.6% | +6.5% |
| ROA (TTM)Return on assets | -3.7% | +0.7% |
| ROICReturn on invested capital | — | +1.9% |
| ROCEReturn on capital employed | — | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 2 |
| Debt / EquityFinancial leverage | 3.12x | 6.26x |
| Net DebtTotal debt minus cash | $5.9B | $11.8B |
| Cash & Equiv.Liquid assets | $144M | $338M |
| Total DebtShort + long-term debt | $6.0B | $12.1B |
| 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 | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| YTD ReturnYear-to-date | +1.2% | +0.8% |
| 1-Year ReturnPast 12 months | +7.7% | +8.0% |
| 3-Year ReturnCumulative with dividends | +25.7% | +24.6% |
| 5-Year ReturnCumulative with dividends | +23.3% | +24.6% |
| 10-Year ReturnCumulative with dividends | +27.5% | +24.6% |
| CAGR (3Y)Annualised 3-year return | +7.9% | +7.6% |
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 | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.00x | 0.03x |
| 52-Week HighHighest price in past year | $26.87 | $26.26 |
| 52-Week LowLowest price in past year | $23.97 | $24.46 |
| % of 52W HighCurrent price vs 52-week peak | +93.2% | +97.6% |
| RSI (14)Momentum oscillator 0–100 | 57.3 | 50.1 |
| Avg Volume (50D)Average daily shares traded | 33K | 2K |
Analyst Outlook
For income investors, PMTU offers the higher dividend yield at 6.26% vs RCC's 4.83%.
| Metric | RCCReady Capital Cor… | PMTUPennyMac Mortgage… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | — |
| Price TargetConsensus 12-month target | — | — |
| # AnalystsCovering analysts | — | — |
| Dividend YieldAnnual dividend ÷ price | +4.8% | +6.3% |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $1.21 | $1.60 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 23 | Feb 26 | Change |
|---|---|---|---|
| Ready Capital Corpo… (RCC) | 100 | 104.88 | +4.9% |
| PennyMac Mortgage I… (PMTU) | 98.98 | 104.5 | +5.6% |
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 |
|---|---|---|---|
| Ready Capital Corpo… (RCC) | $58M | $27M | -52.8% |
| PennyMac Mortgage I… (PMTU) | $292M | $505M | +72.6% |
Ready Capital Corporation 5.75%'s revenue grew from $58M (2015) to $27M (2024) — a -8.0% CAGR. PennyMac Mortgage Investment Trust's revenue grew from $292M (2015) to $505M (2024) — a 6.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Ready Capital Corpo… (RCC) | -2.2% | -15.9% | -632.6% |
| PennyMac Mortgage I… (PMTU) | 30.8% | 31.9% | +3.5% |
Ready Capital Corporation 5.75%'s net margin went from -2% (2015) to -16% (2024). PennyMac Mortgage Investment Trust's net margin went from 31% (2015) to 32% (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 |
|---|---|---|---|
| Ready Capital Corpo… (RCC) | -0.04 | -2.63 | -6393.8% |
| PennyMac Mortgage I… (PMTU) | 1.16 | 1.37 | +18.1% |
Ready Capital Corporation 5.75%'s EPS grew from $-0.04 (2015) to $-2.63 (2024). PennyMac Mortgage Investment Trust's EPS grew from $1.16 (2015) to $1.37 (2024) — a 2% CAGR.
Chart 6Free Cash Flow — 5 Years
Ready Capital Corporation 5.75% generated $-51M FCF in 2024 (+99% vs 2021). PennyMac Mortgage Investment Trust generated $-3B FCF in 2024 (+2% vs 2021).
RCC vs PMTU: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is RCC or PMTU 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 — RCC or PMTU?
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 — RCC or PMTU?
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 — RCC or PMTU?
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 — RCC or PMTU?
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 RCC or PMTU 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 RCC and PMTU?
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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