REFI vs STWD

For growth investors, Chicago Atlantic Real Estate Finance, Inc.

(REFI) is the stronger pick with 15. 2% revenue growth year-over-year, versus -7. 9% for Starwood Property Trust, Inc. (STWD). Chicago Atlantic Real Estate Finance, Inc. (REFI) offers the better valuation at 6. 9x trailing P/E (6. 4x forward), making it the more compelling value choice. Analysts rate Chicago Atlantic Real Estate Finance, Inc. (REFI) a "Buy" — based on 6 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.

On trailing P/E, Chicago Atlantic Real Estate Finance, Inc.

(REFI) is the cheapest at 6. 9x versus Starwood Property Trust, Inc. at 14. 8x. On forward P/E, Chicago Atlantic Real Estate Finance, Inc. is actually cheaper at 6. 4x.

Over the past 5 years, Chicago Atlantic Real Estate Finance, Inc.

(REFI) delivered a total return of +24. 7%, compared to +9. 8% for Starwood Property Trust, Inc. (STWD). Over 10 years, the gap is even starker: STWD returned +83. 4% versus REFI's +24. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Starwood Property Trust, Inc.

(STWD) is the lower-risk stock at 0. 45β versus Chicago Atlantic Real Estate Finance, Inc. 's 0. 69β — meaning REFI is approximately 51% more volatile than STWD relative to the S&P 500. On balance sheet safety, Chicago Atlantic Real Estate Finance, Inc. (REFI) carries a lower debt/equity ratio of 32% versus 3% for Starwood Property Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Chicago Atlantic Real Estate Finance, Inc.

(REFI) is pulling ahead at 15. 2% versus -7. 9% for Starwood Property Trust, Inc. (STWD). On earnings-per-share growth, the picture is similar: Starwood Property Trust, Inc. grew EPS 8. 9% year-over-year, compared to -10. 6% for Chicago Atlantic Real Estate Finance, Inc.. Over a 3-year CAGR, REFI leads at 8. 9% annualised revenue growth. 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.

Chicago Atlantic Real Estate Finance, Inc.

(REFI) is the more profitable company, earning 57. 1% net margin versus 21. 9% for Starwood Property Trust, Inc. — meaning it keeps 57. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STWD leads at 76. 2% versus 57. 1% for REFI. At the gross margin level — before operating expenses — REFI leads at 86. 9%, 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.

On forward earnings alone, Chicago Atlantic Real Estate Finance, Inc.

(REFI) trades at 6. 4x forward P/E versus 10. 0x for Starwood Property Trust, Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for REFI: 20. 5% to $14. 00.

In this comparison, REFI (100.

0% yield) pays a dividend. STWD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Chicago Atlantic Real Estate Finance, Inc.

(REFI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 69), 100. 0% yield). Both have compounded well over 10 years (REFI: +24. 7%, STWD: +83. 4%), 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.

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: REFI is a small-cap high-growth stock; STWD is a small-cap deep-value stock. REFI pays a dividend while STWD does not, making them suitable for different income and tax situations. 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.