RWT
Redwood Trust, Inc.
REIT - Mortgage
Market Cap$697M
5Y Perf.+4.3%
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Stock Comparison
RWT vs BXMT
Revenue, margins, valuation, and 5-year total return — side by side.
BXMT
Blackstone Mortgage Trust, Inc.
REIT - Mortgage
Market Cap$3.23B
5Y Perf.-18.8%
RWT vs BXMT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWT | BXMT |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $697M | $3.23B |
| Revenue (TTM) | $1.06B | $1.54B |
| Net Income (TTM) | $-70M | $104M |
| Gross Margin | 24.0% | 62.6% |
| Operating Margin | 24.1% | 58.3% |
| Forward P/E | 7.2x | 12.0x |
| Total Debt | $22.16B | $16.16B |
| Cash & Equiv. | $256M | $453M |
RWT vs BXMT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWT
BXMT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Redwood Trust, Inc. (RWT) | 100 | 104.3 | +4.3% |
| Blackstone Mortgage… (BXMT) | 100 | 81.2 | -18.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWT vs BXMT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: BXMT leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Redwood Trust, Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
RWT
Redwood Trust, Inc.
The Real Estate Income Play
RWT is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.82, yield 13.6%
- Rev growth 356.5%, EPS growth -296.9%
- Beta 0.82, yield 13.6%, current ratio 0.28x
Best for: income & stability and growth exposure
BXMT
Blackstone Mortgage Trust, Inc.
The Real Estate Income Play
BXMT carries the broadest edge in this set and is the clearest fit for long-term compounding and sleep-well-at-night.
- 50.5% 10Y total return vs RWT's 11.5%
- Lower volatility, beta 0.74, current ratio 0.06x
- 6.7% margin vs RWT's -6.6%
Best for: long-term compounding and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RWT | 356.5% FFO/revenue growth vs BXMT's -14.0% |
| Value | RWT | Lower P/E (7.2x vs 12.0x) |
| Quality / Margins | BXMT | 6.7% margin vs RWT's -6.6% |
| Stability / Safety | BXMT | Beta 0.74 vs RWT's 0.82, lower leverage |
| Dividends | RWT | 13.6% yield, 1-year raise streak, vs BXMT's 9.9% |
| Momentum (1Y) | BXMT | +12.1% vs RWT's +7.9% |
| Efficiency (ROA) | BXMT | 0.5% ROA vs RWT's -0.3%, ROIC 4.3% vs 3.9% |
RWT vs BXMT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLBXMTLAGGINGRWT
RWTRedwood Trust, Inc.
2leads
BXMTBlackstone Mortgage T…
4leads
6 Total Categories
CATEGORYLEADERvs RWTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
BXMT4/5
Valuation MetricsMultiples, price ratios, and targets
RWT4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
BXMT9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
BXMT5/6
Risk & VolatilityBeta, volatility, and downside exposure
BXMT2/2
Analyst OutlookRatings, price targets, and dividends
RWT2/2
Income & Cash Flow (Last 12 Months)
BXMT leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
BXMT and RWT operate at a comparable scale, with $1.5B and $1.1B in trailing revenue. BXMT is the more profitable business, keeping 6.7% of every revenue dollar as net income compared to RWT's -6.6%.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| RevenueTrailing 12 months | $1.1B | $1.5B |
| EBITDAEarnings before interest/tax | $266M | $948M |
| Net IncomeAfter-tax profit | -$70M | $104M |
| Free Cash FlowCash after capex | -$10.1B | $335M |
| Gross MarginGross profit ÷ Revenue | +24.0% | +62.6% |
| Operating MarginEBIT ÷ Revenue | +24.1% | +58.3% |
| Net MarginNet income ÷ Revenue | -6.6% | +6.7% |
| FCF MarginFCF ÷ Revenue | -9.5% | +21.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +4.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.8% | — |
BXMT leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
RWT leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, BXMT's 16.3x EV/EBITDA is more attractive than RWT's 21.2x.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| Market CapShares × price | $697M | $3.2B |
| Enterprise ValueMkt cap + debt − cash | $22.6B | $18.9B |
| Trailing P/EPrice ÷ TTM EPS | -8.86x | 29.92x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.19x | 11.98x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 21.22x | 16.35x |
| Price / SalesMarket cap ÷ Revenue | 0.63x | 2.12x |
| Price / BookPrice ÷ Book value/share | 0.74x | 0.93x |
| Price / FCFMarket cap ÷ FCF | — | 11.71x |
RWT leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
BXMT leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
BXMT delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $-7 for RWT. BXMT carries lower financial leverage with a 4.61x debt-to-equity ratio, signaling a more conservative balance sheet compared to RWT's 22.56x. On the Piotroski fundamental quality scale (0–9), BXMT scores 6/9 vs RWT's 4/9, reflecting solid financial health.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| ROE (TTM)Return on equity | -6.6% | +2.9% |
| ROA (TTM)Return on assets | -0.3% | +0.5% |
| ROICReturn on invested capital | +3.9% | +4.3% |
| ROCEReturn on capital employed | +6.1% | +11.3% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 22.56x | 4.61x |
| Net DebtTotal debt minus cash | $21.9B | $15.7B |
| Cash & Equiv.Liquid assets | $256M | $453M |
| Total DebtShort + long-term debt | $22.2B | $16.2B |
| Interest CoverageEBIT ÷ Interest expense | 0.96x | 1.11x |
BXMT leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
BXMT leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in BXMT five years ago would be worth $9,591 today (with dividends reinvested), compared to $8,326 for RWT. Over the past 12 months, BXMT leads with a +12.1% total return vs RWT's +7.9%. The 3-year compound annual growth rate (CAGR) favors BXMT at 14.0% vs RWT's 9.6% — a key indicator of consistent wealth creation.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| YTD ReturnYear-to-date | +1.9% | +0.7% |
| 1-Year ReturnPast 12 months | +7.9% | +12.1% |
| 3-Year ReturnCumulative with dividends | +31.6% | +48.1% |
| 5-Year ReturnCumulative with dividends | -16.7% | -4.1% |
| 10-Year ReturnCumulative with dividends | +11.5% | +50.5% |
| CAGR (3Y)Annualised 3-year return | +9.6% | +14.0% |
BXMT leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
BXMT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
BXMT is the less volatile stock with a 0.74 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. BXMT currently trades 92.6% from its 52-week high vs RWT's 80.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.82x | 0.74x |
| 52-Week HighHighest price in past year | $6.97 | $20.67 |
| 52-Week LowLowest price in past year | $5.00 | $17.67 |
| % of 52W HighCurrent price vs 52-week peak | +80.1% | +92.6% |
| RSI (14)Momentum oscillator 0–100 | 42.2 | 47.5 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 1.4M |
BXMT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
RWT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RWT as "Hold" and BXMT as "Hold". For income investors, RWT offers the higher dividend yield at 13.62% vs BXMT's 9.86%.
| Metric | RWTRedwood Trust, In… | BXMTBlackstone Mortga… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $6.50 | — |
| # AnalystsCovering analysts | 23 | 18 |
| Dividend YieldAnnual dividend ÷ price | +13.6% | +9.9% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $0.76 | $1.89 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.4% | +3.4% |
RWT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
BXMT leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RWT leads in 2 (Valuation Metrics, Analyst Outlook).
Best OverallBlackstone Mortgage Trust, … (BXMT)Leads 4 of 6 categories
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RWT vs BXMT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWT or BXMT 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 -14. 0% for Blackstone Mortgage Trust, Inc. (BXMT). Blackstone Mortgage Trust, Inc. (BXMT) offers the better valuation at 29. 9x trailing P/E (12. 0x forward), making it the more compelling value choice. 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 has the better valuation — RWT or BXMT?
On forward P/E, Redwood Trust, Inc.
is actually cheaper at 7. 2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — RWT or BXMT?
Over the past 5 years, Blackstone Mortgage Trust, Inc.
(BXMT) delivered a total return of -4. 1%, compared to -16. 7% for Redwood Trust, Inc. (RWT). Over 10 years, the gap is even starker: BXMT returned +50. 5% 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.
04Which is safer — RWT or BXMT?
By beta (market sensitivity over 5 years), Blackstone Mortgage Trust, Inc.
(BXMT) is the lower-risk stock at 0. 74β versus Redwood Trust, Inc. 's 0. 82β — meaning RWT is approximately 11% more volatile than BXMT relative to the S&P 500. On balance sheet safety, Blackstone Mortgage Trust, Inc. (BXMT) carries a lower debt/equity ratio of 5% versus 23% for Redwood Trust, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — RWT or BXMT?
By revenue growth (latest reported year), Redwood Trust, Inc.
(RWT) is pulling ahead at 356. 5% versus -14. 0% for Blackstone Mortgage Trust, Inc. (BXMT). On earnings-per-share growth, the picture is similar: Blackstone Mortgage Trust, Inc. grew EPS 154. 7% 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.
06Which has better profit margins — RWT or BXMT?
Blackstone Mortgage Trust, Inc.
(BXMT) is the more profitable company, earning 7. 2% net margin versus -6. 3% for Redwood Trust, Inc. — meaning it keeps 7. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RWT leads at 95. 3% versus 71. 6% for BXMT. 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.
07Is RWT or BXMT more undervalued right now?
On forward earnings alone, Redwood Trust, Inc.
(RWT) trades at 7. 2x forward P/E versus 12. 0x for Blackstone Mortgage Trust, Inc. — 4. 8x cheaper on a one-year earnings basis.
08Which pays a better dividend — RWT or BXMT?
All stocks in this comparison pay dividends.
Redwood Trust, Inc. (RWT) offers the highest yield at 13. 6%, versus 9. 9% for Blackstone Mortgage Trust, Inc. (BXMT).
09Is RWT or BXMT better for a retirement portfolio?
For long-horizon retirement investors, Blackstone Mortgage Trust, Inc.
(BXMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 74), 9. 9% yield). Both have compounded well over 10 years (BXMT: +50. 5%, 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.
10What are the main differences between RWT and BXMT?
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: RWT is a small-cap high-growth stock; BXMT is a small-cap income-oriented 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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