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 IVR
Revenue, margins, valuation, and 5-year total return — side by side.
IVR
Invesco Mortgage Capital Inc.
REIT - Mortgage
Market Cap$577M
5Y Perf.-6.5%
RWTN vs IVR — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWTN | IVR |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $3.18B | $577M |
| Revenue (TTM) | $977M | $335M |
| Net Income (TTM) | $-70M | $101M |
| Gross Margin | 95.5% | 50.5% |
| Operating Margin | 77.5% | 47.1% |
| Forward P/E | 32.8x | 3.7x |
| Total Debt | $22.29B | $5.62B |
| Cash & Equiv. | $256M | $56M |
RWTN vs IVR — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWTN
IVR
| Stock | Feb 24 | May 26 | Return |
|---|---|---|---|
| Redwood Trust, Inc.… (RWTN) | 100 | 100.4 | +0.4% |
| Invesco Mortgage Ca… (IVR) | 100 | 93.5 | -6.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWTN vs IVR
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: IVR leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Redwood Trust, Inc. 9.125% Seni is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. 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 growth exposure.
- Dividend streak 1 yrs, beta 0.59, yield 3.4%
- Rev growth 13.3%, EPS growth -293.8%
- 21.1% 10Y total return vs IVR's -31.0%
Best for: income & stability and growth exposure
IVR
Invesco Mortgage Capital Inc.
The Real Estate Income Play
IVR carries the broadest edge in this set and is the clearest fit for value and quality.
- Lower P/E (3.7x vs 32.8x)
- 30.2% margin vs RWTN's -7.2%
- +29.9% vs RWTN's +12.7%
Best for: value and quality
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RWTN | 13.3% FFO/revenue growth vs IVR's -24.6% |
| Value | IVR | Lower P/E (3.7x vs 32.8x) |
| Quality / Margins | IVR | 30.2% margin vs RWTN's -7.2% |
| Stability / Safety | RWTN | Beta 0.59 vs IVR's 0.78 |
| Dividends | RWTN | 3.4% yield, 1-year raise streak, vs IVR's 20.1% |
| Momentum (1Y) | IVR | +29.9% vs RWTN's +12.7% |
| Efficiency (ROA) | IVR | 1.7% ROA vs RWTN's -0.3%, ROIC 4.0% vs -0.1% |
RWTN vs IVR — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRWTNLAGGINGIVR
IVRInvesco Mortgage Capi…
2leads
RWTNRedwood Trust, Inc. 9…
2leads
6 Total Categories
CATEGORYLEADERvs IVRMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
RWTN4/6
Valuation MetricsMultiples, price ratios, and targets
IVR3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
IVR9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
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 — 2.9x IVR's $335M. IVR is the more profitable business, keeping 30.2% 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… | IVRInvesco Mortgage … |
|---|---|---|
| RevenueTrailing 12 months | $977M | $335M |
| EBITDAEarnings before interest/tax | $765M | $158M |
| Net IncomeAfter-tax profit | -$70M | $101M |
| Free Cash FlowCash after capex | $5.8B | $157M |
| Gross MarginGross profit ÷ Revenue | +95.5% | +50.5% |
| Operating MarginEBIT ÷ Revenue | +77.5% | +47.1% |
| Net MarginNet income ÷ Revenue | -7.2% | +30.2% |
| FCF MarginFCF ÷ Revenue | +5.9% | +46.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +184.3% | -58.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -6.5% | +9.7% |
RWTN leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
IVR leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
| Metric | RWTNRedwood Trust, In… | IVRInvesco Mortgage … |
|---|---|---|
| Market CapShares × price | $3.2B | $577M |
| Enterprise ValueMkt cap + debt − cash | $25.2B | $6.1B |
| Trailing P/EPrice ÷ TTM EPS | -41.10x | 5.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.82x | 3.67x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 19.12x |
| Price / SalesMarket cap ÷ Revenue | 11.59x | 1.70x |
| Price / BookPrice ÷ Book value/share | 2.93x | 0.67x |
| Price / FCFMarket cap ÷ FCF | — | 3.67x |
IVR leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
IVR leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
IVR delivers a 13.3% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $-7 for RWTN. IVR carries lower financial leverage with a 7.05x debt-to-equity ratio, signaling a more conservative balance sheet compared to RWTN's 22.68x. On the Piotroski fundamental quality scale (0–9), IVR scores 5/9 vs RWTN's 1/9, reflecting solid financial health.
| Metric | RWTNRedwood Trust, In… | IVRInvesco Mortgage … |
|---|---|---|
| ROE (TTM)Return on equity | -6.6% | +13.3% |
| ROA (TTM)Return on assets | -0.3% | +1.7% |
| ROICReturn on invested capital | -0.1% | +4.0% |
| ROCEReturn on capital employed | -0.1% | +40.4% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 5 |
| Debt / EquityFinancial leverage | 22.68x | 7.05x |
| Net DebtTotal debt minus cash | $22.0B | $5.6B |
| Cash & Equiv.Liquid assets | $256M | $56M |
| Total DebtShort + long-term debt | $22.3B | $5.6B |
| Interest CoverageEBIT ÷ Interest expense | -1.48x | 1.46x |
IVR leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — RWTN and IVR each lead in 3 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 $5,499 for IVR. Over the past 12 months, IVR leads with a +29.9% total return vs RWTN's +12.7%. The 3-year compound annual growth rate (CAGR) favors IVR at 9.4% vs RWTN's 6.6% — a key indicator of consistent wealth creation.
| Metric | RWTNRedwood Trust, In… | IVRInvesco Mortgage … |
|---|---|---|
| YTD ReturnYear-to-date | +4.4% | +0.4% |
| 1-Year ReturnPast 12 months | +12.7% | +29.9% |
| 3-Year ReturnCumulative with dividends | +21.1% | +30.8% |
| 5-Year ReturnCumulative with dividends | +21.1% | -45.0% |
| 10-Year ReturnCumulative with dividends | +21.1% | -31.0% |
| CAGR (3Y)Annualised 3-year return | +6.6% | +9.4% |
Evenly matched — RWTN and IVR each lead in 3 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 IVR's 0.78 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 IVR's 84.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWTNRedwood Trust, In… | IVRInvesco Mortgage … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.59x | 0.78x |
| 52-Week HighHighest price in past year | $25.77 | $9.50 |
| 52-Week LowLowest price in past year | $8.97 | $7.10 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +84.5% |
| RSI (14)Momentum oscillator 0–100 | 65.3 | 43.2 |
| Avg Volume (50D)Average daily shares traded | 8K | 2.2M |
RWTN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — RWTN and IVR each lead in 1 of 2 comparable metrics.
Analyst Outlook
For income investors, IVR offers the higher dividend yield at 20.08% vs RWTN's 3.44%.
| Metric | RWTNRedwood Trust, In… | IVRInvesco Mortgage … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $9.00 |
| # AnalystsCovering analysts | — | 20 |
| Dividend YieldAnnual dividend ÷ price | +3.4% | +20.1% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $0.88 | $1.61 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | +1.5% |
Evenly matched — RWTN and IVR each lead in 1 of 2 comparable metrics.
Key Takeaway
RWTN leads in 2 of 6 categories (Income & Cash Flow, Risk & Volatility). IVR leads in 2 (Valuation Metrics, Profitability & Efficiency). 2 tied.
Best OverallRedwood Trust, Inc. 9.125% … (RWTN)Leads 2 of 6 categories
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RWTN vs IVR: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWTN or IVR a better buy right now?
For growth investors, Redwood Trust, Inc.
9. 125% Seni (RWTN) is the stronger pick with 13. 3% revenue growth year-over-year, versus -24. 6% for Invesco Mortgage Capital Inc. (IVR). Invesco Mortgage Capital Inc. (IVR) offers the better valuation at 5. 2x trailing P/E (3. 7x forward), making it the more compelling value choice. Analysts rate Invesco Mortgage Capital Inc. (IVR) a "Hold" — based on 20 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 IVR?
On forward P/E, Invesco Mortgage Capital Inc.
is actually cheaper at 3. 7x.
03Which is the better long-term investment — RWTN or IVR?
Over the past 5 years, Redwood Trust, Inc.
9. 125% Seni (RWTN) delivered a total return of +21. 1%, compared to -45. 0% for Invesco Mortgage Capital Inc. (IVR). Over 10 years, the gap is even starker: RWTN returned +21. 1% versus IVR's -31. 0%. 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 IVR?
By beta (market sensitivity over 5 years), Redwood Trust, Inc.
9. 125% Seni (RWTN) is the lower-risk stock at 0. 59β versus Invesco Mortgage Capital Inc. 's 0. 78β — meaning IVR is approximately 32% more volatile than RWTN relative to the S&P 500. On balance sheet safety, Invesco Mortgage Capital Inc. (IVR) carries a lower debt/equity ratio of 7% versus 23% for Redwood Trust, Inc. 9. 125% Seni — giving it more financial flexibility in a downturn.
05Which is growing faster — RWTN or IVR?
By revenue growth (latest reported year), Redwood Trust, Inc.
9. 125% Seni (RWTN) is pulling ahead at 13. 3% versus -24. 6% for Invesco Mortgage Capital Inc. (IVR). On earnings-per-share growth, the picture is similar: Invesco Mortgage Capital Inc. grew EPS 135. 4% 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 IVR?
Invesco Mortgage Capital Inc.
(IVR) is the more profitable company, earning 29. 8% net margin versus -25. 5% for Redwood Trust, Inc. 9. 125% Seni — meaning it keeps 29. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IVR leads at 94. 5% versus -9. 7% for RWTN. At the gross margin level — before operating expenses — IVR leads at 96. 7%, 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 IVR more undervalued right now?
On forward earnings alone, Invesco Mortgage Capital Inc.
(IVR) trades at 3. 7x forward P/E versus 32. 8x for Redwood Trust, Inc. 9. 125% Seni — 29. 1x cheaper on a one-year earnings basis.
08Which pays a better dividend — RWTN or IVR?
All stocks in this comparison pay dividends.
Invesco Mortgage Capital Inc. (IVR) offers the highest yield at 20. 1%, versus 3. 4% for Redwood Trust, Inc. 9. 125% Seni (RWTN).
09Is RWTN or IVR 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%, IVR: -31. 0%), 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 IVR?
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; IVR is a small-cap deep-value 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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