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 CIM
Revenue, margins, valuation, and 5-year total return — side by side.
CIM
Chimera Investment Corporation
REIT - Mortgage
Market Cap$1.13B
5Y Perf.+3.5%
RWTN vs CIM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWTN | CIM |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $3.18B | $1.13B |
| Revenue (TTM) | $977M | $499M |
| Net Income (TTM) | $-70M | $19M |
| Gross Margin | 95.5% | 93.3% |
| Operating Margin | 77.5% | 64.2% |
| Forward P/E | 32.8x | 6.4x |
| Total Debt | $22.29B | $13.07B |
| Cash & Equiv. | $256M | $279M |
RWTN vs CIM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWTN
CIM
| Stock | Feb 24 | May 26 | Return |
|---|---|---|---|
| Redwood Trust, Inc.… (RWTN) | 100 | 100.4 | +0.4% |
| Chimera Investment … (CIM) | 100 | 103.5 | +3.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWTN vs CIM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CIM 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 dividend income and shareholder returns. 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 CIM's 19.1%
- Lower volatility, beta 0.59
Best for: income & stability and long-term compounding
CIM
Chimera Investment Corporation
The Real Estate Income Play
CIM carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 218.2%, EPS growth 150.0%
- 218.2% FFO/revenue growth vs RWTN's 13.3%
- Lower P/E (6.4x vs 32.8x)
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | CIM | 218.2% FFO/revenue growth vs RWTN's 13.3% |
| Value | CIM | Lower P/E (6.4x vs 32.8x) |
| Quality / Margins | CIM | 3.9% margin vs RWTN's -7.2% |
| Stability / Safety | RWTN | Beta 0.59 vs CIM's 0.81 |
| Dividends | RWTN | 3.4% yield, 1-year raise streak, vs CIM's 7.6% |
| Momentum (1Y) | CIM | +25.7% vs RWTN's +12.7% |
| Efficiency (ROA) | CIM | 0.1% ROA vs RWTN's -0.3%, ROIC 4.1% vs -0.1% |
RWTN vs CIM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2018
RWTN vs CIM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRWTNLAGGINGCIM
CIMChimera Investment Co…
2leads
RWTNRedwood Trust, Inc. 9…
3leads
6 Total Categories
CATEGORYLEADERvs CIMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
RWTN4/6
Valuation MetricsMultiples, price ratios, and targets
CIM3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CIM9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
RWTN4/6
Risk & VolatilityBeta, volatility, and downside exposure
RWTN2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
RWTN leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RWTN is the larger business by revenue, generating $977M annually — 2.0x CIM's $499M. CIM is the more profitable business, keeping 3.9% of every revenue dollar as net income compared to RWTN's -7.2%. On growth, RWTN holds the edge at +184.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| RevenueTrailing 12 months | $977M | $499M |
| EBITDAEarnings before interest/tax | $765M | $434M |
| Net IncomeAfter-tax profit | -$70M | $19M |
| Free Cash FlowCash after capex | $5.8B | -$54M |
| Gross MarginGross profit ÷ Revenue | +95.5% | +93.3% |
| Operating MarginEBIT ÷ Revenue | +77.5% | +64.2% |
| Net MarginNet income ÷ Revenue | -7.2% | +3.9% |
| FCF MarginFCF ÷ Revenue | +5.9% | -10.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +184.3% | -100.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -6.5% | -144.1% |
RWTN leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
CIM leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| Market CapShares × price | $3.2B | $1.1B |
| Enterprise ValueMkt cap + debt − cash | $25.2B | $13.9B |
| Trailing P/EPrice ÷ TTM EPS | -41.10x | 4.92x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.82x | 6.41x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.10x |
| EV / EBITDAEnterprise value multiple | — | 18.04x |
| Price / SalesMarket cap ÷ Revenue | 11.59x | 1.38x |
| Price / BookPrice ÷ Book value/share | 2.93x | 0.44x |
| Price / FCFMarket cap ÷ FCF | — | — |
CIM leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
CIM leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
CIM delivers a 0.8% return on equity — every $100 of shareholder capital generates $1 in annual profit, vs $-7 for RWTN. CIM carries lower financial leverage with a 5.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to RWTN's 22.68x. On the Piotroski fundamental quality scale (0–9), CIM scores 3/9 vs RWTN's 1/9, reflecting mixed financial health.
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| ROE (TTM)Return on equity | -6.6% | +0.8% |
| ROA (TTM)Return on assets | -0.3% | +0.1% |
| ROICReturn on invested capital | -0.1% | +4.1% |
| ROCEReturn on capital employed | -0.1% | +8.3% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 3 |
| Debt / EquityFinancial leverage | 22.68x | 5.08x |
| Net DebtTotal debt minus cash | $22.0B | $12.8B |
| Cash & Equiv.Liquid assets | $256M | $279M |
| Total DebtShort + long-term debt | $22.3B | $13.1B |
| Interest CoverageEBIT ÷ Interest expense | -1.48x | 1.42x |
CIM 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 $6,252 for CIM. Over the past 12 months, CIM leads with a +25.7% total return vs RWTN's +12.7%. The 3-year compound annual growth rate (CAGR) favors RWTN at 6.6% vs CIM's 5.7% — a key indicator of consistent wealth creation.
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| YTD ReturnYear-to-date | +4.4% | +9.8% |
| 1-Year ReturnPast 12 months | +12.7% | +25.7% |
| 3-Year ReturnCumulative with dividends | +21.1% | +18.2% |
| 5-Year ReturnCumulative with dividends | +21.1% | -37.5% |
| 10-Year ReturnCumulative with dividends | +21.1% | +19.1% |
| CAGR (3Y)Annualised 3-year return | +6.6% | +5.7% |
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 CIM's 0.81 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 CIM's 91.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.59x | 0.81x |
| 52-Week HighHighest price in past year | $25.77 | $14.88 |
| 52-Week LowLowest price in past year | $8.97 | $11.67 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +91.0% |
| RSI (14)Momentum oscillator 0–100 | 65.3 | 54.3 |
| Avg Volume (50D)Average daily shares traded | 8K | 728K |
RWTN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — RWTN and CIM each lead in 1 of 2 comparable metrics.
Analyst Outlook
For income investors, CIM offers the higher dividend yield at 7.57% vs RWTN's 3.44%.
| Metric | RWTNRedwood Trust, In… | CIMChimera Investmen… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $14.25 |
| # AnalystsCovering analysts | — | 16 |
| Dividend YieldAnnual dividend ÷ price | +3.4% | +7.6% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $0.88 | $1.02 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | 0.0% |
Evenly matched — RWTN and CIM each lead in 1 of 2 comparable metrics.
Key Takeaway
RWTN leads in 3 of 6 categories (Income & Cash Flow, Total Returns). CIM leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Best OverallRedwood Trust, Inc. 9.125% … (RWTN)Leads 3 of 6 categories
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RWTN vs CIM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWTN or CIM a better buy right now?
For growth investors, Chimera Investment Corporation (CIM) is the stronger pick with 218.
2% revenue growth year-over-year, versus 13. 3% for Redwood Trust, Inc. 9. 125% Seni (RWTN). Chimera Investment Corporation (CIM) offers the better valuation at 4. 9x trailing P/E (6. 4x forward), making it the more compelling value choice. Analysts rate Chimera Investment Corporation (CIM) a "Hold" — based on 16 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 — RWTN or CIM?
On forward P/E, Chimera Investment Corporation is actually cheaper at 6.
4x.
03Which is the better long-term investment — RWTN or CIM?
Over the past 5 years, Redwood Trust, Inc.
9. 125% Seni (RWTN) delivered a total return of +21. 1%, compared to -37. 5% for Chimera Investment Corporation (CIM). Over 10 years, the gap is even starker: RWTN returned +21. 1% versus CIM's +19. 1%. 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 — RWTN or CIM?
By beta (market sensitivity over 5 years), Redwood Trust, Inc.
9. 125% Seni (RWTN) is the lower-risk stock at 0. 59β versus Chimera Investment Corporation's 0. 81β — meaning CIM is approximately 37% more volatile than RWTN relative to the S&P 500. On balance sheet safety, Chimera Investment Corporation (CIM) carries a lower debt/equity ratio of 5% versus 23% for Redwood Trust, Inc. 9. 125% Seni — giving it more financial flexibility in a downturn.
05Which is growing faster — RWTN or CIM?
By revenue growth (latest reported year), Chimera Investment Corporation (CIM) is pulling ahead at 218.
2% versus 13. 3% for Redwood Trust, Inc. 9. 125% Seni (RWTN). On earnings-per-share growth, the picture is similar: Chimera Investment Corporation grew EPS 150. 0% year-over-year, compared to -293. 8% for Redwood Trust, Inc. 9. 125% Seni. 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 — RWTN or CIM?
Chimera Investment Corporation (CIM) is the more profitable company, earning 28.
1% net margin versus -25. 5% for Redwood Trust, Inc. 9. 125% Seni — meaning it keeps 28. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CIM leads at 93. 2% versus -9. 7% for RWTN. At the gross margin level — before operating expenses — CIM leads at 94. 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.
07Is RWTN or CIM more undervalued right now?
On forward earnings alone, Chimera Investment Corporation (CIM) trades at 6.
4x forward P/E versus 32. 8x for Redwood Trust, Inc. 9. 125% Seni — 26. 4x cheaper on a one-year earnings basis.
08Which pays a better dividend — RWTN or CIM?
All stocks in this comparison pay dividends.
Chimera Investment Corporation (CIM) offers the highest yield at 7. 6%, versus 3. 4% for Redwood Trust, Inc. 9. 125% Seni (RWTN).
09Is RWTN or CIM 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%, CIM: +19. 1%), 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 RWTN and CIM?
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; CIM 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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