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

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

Risk and Volatility

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

Earnings & Valuation

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

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

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.

Institutional and Insider Ownership

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

Analyst Ratings

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

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

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

Dividends

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 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 out 24.2% of its earnings in the form of a dividend. 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.

Profitability

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

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

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 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.

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.