SACH vs STWD

For growth investors, Starwood Property Trust, Inc.

(STWD) is the stronger pick with -7. 9% revenue growth year-over-year, versus -18. 2% for Sachem Capital Corp. (SACH). Starwood Property Trust, Inc. (STWD) offers the better valuation at 15. 0x trailing P/E (10. 2x forward), making it the more compelling value choice. Analysts rate Starwood Property Trust, Inc. (STWD) a "Buy" — based on 21 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, Starwood Property Trust, Inc.

(STWD) is the cheapest at 15. 0x versus Sachem Capital Corp. at 27. 3x.

Over the past 5 years, Starwood Property Trust, Inc.

(STWD) delivered a total return of +11. 3%, compared to -43. 0% for Sachem Capital Corp. (SACH). Over 10 years, the gap is even starker: STWD returned +90. 8% versus SACH's -5. 8%. 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), Sachem Capital Corp.

(SACH) is the lower-risk stock at 0. 44β versus Starwood Property Trust, Inc. 's 0. 45β — meaning STWD is approximately 3% more volatile than SACH relative to the S&P 500. On balance sheet safety, Sachem Capital Corp. (SACH) carries a lower debt/equity ratio of 159% versus 3% for Starwood Property Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Starwood Property Trust, Inc.

(STWD) is pulling ahead at -7. 9% versus -18. 2% for Sachem Capital Corp. (SACH). On earnings-per-share growth, the picture is similar: Sachem Capital Corp. grew EPS 104. 2% year-over-year, compared to 8. 9% for Starwood Property Trust, Inc.. Over a 3-year CAGR, SACH leads at 15. 4% 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.

Starwood Property Trust, Inc.

(STWD) is the more profitable company, earning 21. 9% net margin versus 13. 4% for Sachem Capital Corp. — meaning it keeps 21. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STWD leads at 76. 2% versus 58. 8% for SACH. At the gross margin level — before operating expenses — SACH leads at 97. 8%, 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.

In this comparison, SACH (18.

9% yield) pays a dividend. STWD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Sachem Capital Corp.

(SACH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 44), 18. 9% yield). Both have compounded well over 10 years (SACH: -5. 8%, STWD: +90. 8%), 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: SACH is a small-cap income-oriented stock; STWD is a small-cap deep-value stock. SACH 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.