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 NLY
Revenue, margins, valuation, and 5-year total return — side by side.
NLY
Annaly Capital Management, Inc.
REIT - Mortgage
Market Cap$16.08B
5Y Perf.+17.3%
RWTN vs NLY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWTN | NLY |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $3.18B | $16.08B |
| Revenue (TTM) | $977M | $6.70B |
| Net Income (TTM) | $-70M | $2.03B |
| Gross Margin | 95.5% | 99.2% |
| Operating Margin | 77.5% | 102.6% |
| Forward P/E | 32.8x | 7.5x |
| Total Debt | $22.29B | $111.86B |
| Cash & Equiv. | $256M | $2.04B |
RWTN vs NLY — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWTN
NLY
| Stock | Feb 24 | May 26 | Return |
|---|---|---|---|
| Redwood Trust, Inc.… (RWTN) | 100 | 100.4 | +0.4% |
| Annaly Capital Mana… (NLY) | 100 | 117.3 | +17.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWTN vs NLY
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: NLY leads in 5 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%
- Lower volatility, beta 0.59
Best for: income & stability and growth exposure
NLY
Annaly Capital Management, Inc.
The Real Estate Income Play
NLY carries the broadest edge in this set and is the clearest fit for long-term compounding.
- 35.5% 10Y total return vs RWTN's 21.1%
- Lower P/E (7.5x vs 32.8x)
- 30.3% margin vs RWTN's -7.2%
Best for: long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RWTN | 13.3% FFO/revenue growth vs NLY's 5.4% |
| Value | NLY | Lower P/E (7.5x vs 32.8x) |
| Quality / Margins | NLY | 30.3% margin vs RWTN's -7.2% |
| Stability / Safety | RWTN | Beta 0.59 vs NLY's 0.64 |
| Dividends | NLY | 13.1% yield, 1-year raise streak, vs RWTN's 3.4% |
| Momentum (1Y) | NLY | +31.7% vs RWTN's +12.7% |
| Efficiency (ROA) | NLY | 1.7% ROA vs RWTN's -0.3%, ROIC 6.4% vs -0.1% |
RWTN vs NLY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2021
RWTN vs NLY — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLNLYLAGGINGRWTN
RWTNRedwood Trust, Inc. 9…
1leads
NLYAnnaly Capital Manage…
5leads
6 Total Categories
CATEGORYLEADERvs RWTNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
NLY4/6
Valuation MetricsMultiples, price ratios, and targets
NLY3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
NLY7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
NLY4/6
Risk & VolatilityBeta, volatility, and downside exposure
RWTN2/2
Analyst OutlookRatings, price targets, and dividends
NLY1/1
Income & Cash Flow (Last 12 Months)
NLY leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NLY is the larger business by revenue, generating $6.7B annually — 6.9x RWTN's $977M. NLY is the more profitable business, keeping 30.3% 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… | NLYAnnaly Capital Ma… |
|---|---|---|
| RevenueTrailing 12 months | $977M | $6.7B |
| EBITDAEarnings before interest/tax | $765M | $6.9B |
| Net IncomeAfter-tax profit | -$70M | $2.0B |
| Free Cash FlowCash after capex | $5.8B | -$222M |
| Gross MarginGross profit ÷ Revenue | +95.5% | +99.2% |
| Operating MarginEBIT ÷ Revenue | +77.5% | +102.6% |
| Net MarginNet income ÷ Revenue | -7.2% | +30.3% |
| FCF MarginFCF ÷ Revenue | +5.9% | -3.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +184.3% | -8.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -6.5% | +79.5% |
NLY leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
NLY leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
| Metric | RWTNRedwood Trust, In… | NLYAnnaly Capital Ma… |
|---|---|---|
| Market CapShares × price | $3.2B | $16.1B |
| Enterprise ValueMkt cap + debt − cash | $25.2B | $125.9B |
| Trailing P/EPrice ÷ TTM EPS | -41.10x | 7.67x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.82x | 7.46x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 18.32x |
| Price / SalesMarket cap ÷ Revenue | 11.59x | 2.40x |
| Price / BookPrice ÷ Book value/share | 2.93x | 0.89x |
| Price / FCFMarket cap ÷ FCF | — | — |
NLY leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
NLY leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
NLY delivers a 14.1% return on equity — every $100 of shareholder capital generates $14 in annual profit, vs $-7 for RWTN. NLY carries lower financial leverage with a 6.92x debt-to-equity ratio, signaling a more conservative balance sheet compared to RWTN's 22.68x. On the Piotroski fundamental quality scale (0–9), NLY scores 5/9 vs RWTN's 1/9, reflecting solid financial health.
| Metric | RWTNRedwood Trust, In… | NLYAnnaly Capital Ma… |
|---|---|---|
| ROE (TTM)Return on equity | -6.6% | +14.1% |
| ROA (TTM)Return on assets | -0.3% | +1.7% |
| ROICReturn on invested capital | -0.1% | +6.4% |
| ROCEReturn on capital employed | -0.1% | +19.7% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 5 |
| Debt / EquityFinancial leverage | 22.68x | 6.92x |
| Net DebtTotal debt minus cash | $22.0B | $109.8B |
| Cash & Equiv.Liquid assets | $256M | $2.0B |
| Total DebtShort + long-term debt | $22.3B | $111.9B |
| Interest CoverageEBIT ÷ Interest expense | -1.48x | 1.42x |
NLY leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
NLY 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 $10,144 for NLY. Over the past 12 months, NLY leads with a +31.7% total return vs RWTN's +12.7%. The 3-year compound annual growth rate (CAGR) favors NLY at 17.0% vs RWTN's 6.6% — a key indicator of consistent wealth creation.
| Metric | RWTNRedwood Trust, In… | NLYAnnaly Capital Ma… |
|---|---|---|
| YTD ReturnYear-to-date | +4.4% | +0.8% |
| 1-Year ReturnPast 12 months | +12.7% | +31.7% |
| 3-Year ReturnCumulative with dividends | +21.1% | +60.1% |
| 5-Year ReturnCumulative with dividends | +21.1% | +1.4% |
| 10-Year ReturnCumulative with dividends | +21.1% | +35.5% |
| CAGR (3Y)Annualised 3-year return | +6.6% | +17.0% |
NLY 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 NLY's 0.64 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 NLY's 91.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWTNRedwood Trust, In… | NLYAnnaly Capital Ma… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.59x | 0.64x |
| 52-Week HighHighest price in past year | $25.77 | $24.52 |
| 52-Week LowLowest price in past year | $8.97 | $18.43 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +91.3% |
| RSI (14)Momentum oscillator 0–100 | 65.3 | 52.7 |
| Avg Volume (50D)Average daily shares traded | 8K | 7.0M |
RWTN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
NLY leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
For income investors, NLY offers the higher dividend yield at 13.11% vs RWTN's 3.44%.
| Metric | RWTNRedwood Trust, In… | NLYAnnaly Capital Ma… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $24.50 |
| # AnalystsCovering analysts | — | 28 |
| Dividend YieldAnnual dividend ÷ price | +3.4% | +13.1% |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | $0.88 | $2.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | +0.1% |
NLY leads this category, winning 1 of 1 comparable metric.
Key Takeaway
NLY leads in 5 of 6 categories (Income & Cash Flow, Valuation Metrics). RWTN leads in 1 (Risk & Volatility).
Best OverallAnnaly Capital Management, … (NLY)Leads 5 of 6 categories
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RWTN vs NLY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWTN or NLY 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 5. 4% for Annaly Capital Management, Inc. (NLY). Annaly Capital Management, Inc. (NLY) offers the better valuation at 7. 7x trailing P/E (7. 5x forward), making it the more compelling value choice. Analysts rate Annaly Capital Management, Inc. (NLY) a "Buy" — based on 28 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 NLY?
On forward P/E, Annaly Capital Management, Inc.
is actually cheaper at 7. 5x.
03Which is the better long-term investment — RWTN or NLY?
Over the past 5 years, Redwood Trust, Inc.
9. 125% Seni (RWTN) delivered a total return of +21. 1%, compared to +1. 4% for Annaly Capital Management, Inc. (NLY). Over 10 years, the gap is even starker: NLY returned +35. 5% versus RWTN's +21. 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 NLY?
By beta (market sensitivity over 5 years), Redwood Trust, Inc.
9. 125% Seni (RWTN) is the lower-risk stock at 0. 59β versus Annaly Capital Management, Inc. 's 0. 64β — meaning NLY is approximately 9% more volatile than RWTN relative to the S&P 500. On balance sheet safety, Annaly Capital Management, Inc. (NLY) 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 NLY?
By revenue growth (latest reported year), Redwood Trust, Inc.
9. 125% Seni (RWTN) is pulling ahead at 13. 3% versus 5. 4% for Annaly Capital Management, Inc. (NLY). On earnings-per-share growth, the picture is similar: Annaly Capital Management, Inc. grew EPS 80. 2% 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 NLY?
Annaly Capital Management, Inc.
(NLY) is the more profitable company, earning 30. 3% net margin versus -25. 5% for Redwood Trust, Inc. 9. 125% Seni — meaning it keeps 30. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NLY leads at 102. 6% versus -9. 7% for RWTN. At the gross margin level — before operating expenses — NLY leads at 99. 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 NLY more undervalued right now?
On forward earnings alone, Annaly Capital Management, Inc.
(NLY) trades at 7. 5x forward P/E versus 32. 8x for Redwood Trust, Inc. 9. 125% Seni — 25. 4x cheaper on a one-year earnings basis.
08Which pays a better dividend — RWTN or NLY?
All stocks in this comparison pay dividends.
Annaly Capital Management, Inc. (NLY) offers the highest yield at 13. 1%, versus 3. 4% for Redwood Trust, Inc. 9. 125% Seni (RWTN).
09Is RWTN or NLY 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%, NLY: +35. 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 RWTN and NLY?
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; NLY is a mid-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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