Head to Head Survey: Starwood Property Trust (NYSE:STWD) & Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY)

Starwood Property Trust (NYSE:STWD) and Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Insider and Institutional Ownership

49.8% of Starwood Property Trust shares are held by institutional investors. 5.4% of Starwood Property Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Starwood Property Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starwood Property Trust	0	3	5	1	2.78
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	0.00

Starwood Property Trust presently has a consensus target price of $22.25, suggesting a potential upside of 14.28%. Given Starwood Property Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Starwood Property Trust is more favorable than Cyrela Brazil Realty S.A. Empreendimentos e Participações.

Earnings and Valuation

This table compares Starwood Property Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starwood Property Trust	$2.05 billion	3.20	$339.21 million	$1.17	16.64
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	N/A	$188.70 million	$0.62	5.95

Starwood Property Trust has higher revenue and earnings than Cyrela Brazil Realty S.A. Empreendimentos e Participações. Cyrela Brazil Realty S.A. Empreendimentos e Participações is trading at a lower price-to-earnings ratio than Starwood Property Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 9.9%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.15 per share and has a dividend yield of 4.1%. Starwood Property Trust pays out 164.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 24.2% of its earnings in the form of a dividend.

Volatility and Risk

Starwood Property Trust has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Starwood Property Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starwood Property Trust	18.82%	9.93%	1.00%
Cyrela Brazil Realty S.A. Empreendimentos e Participações	17.34%	14.08%	6.72%

Summary

Starwood Property Trust beats Cyrela Brazil Realty S.A. Empreendimentos e Participações on 13 of the 16 factors compared between the two stocks.

About Starwood Property Trust

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and internationally. The company operates through Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing segments. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, include distressed or non-performing loans. The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment. The Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties acquired from CMBS trusts. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2009 and is headquartered in Greenwich, Connecticut.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.