Which Is a Better Investment, Dynex Capital, Inc. or Starwood Property Trust, Inc. Stock?

By Omar Beirat
August 01, 2026
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Sifting through countless of stocks in the Mortgage Real Estate Investment Trusts (REITs) industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Dynex Capital, Inc., Starwood Property Trust or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Dynex Capital, Inc., Starwood Property Trust and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Dynex Capital, Inc., Starwood Property Trust and Inc.

Dynex Capital, Inc., a mortgage real estate investment trust, invests in residential and commercial mortgage-backed securities (MBS) in the United States. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS do not have a guaranty of principal or interest payments. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was incorporated in 1987 and is headquartered in Glen Allen, Virginia.

Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and internationally. It operates through four segments: Commercial and Residential Lending; Infrastructure Lending; Property; and Investing and Servicing. 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, including distressed or non-performing loans. Its Infrastructure Lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment engages primarily in acquiring and managing equity interests in stabilized and to be stabilized commercial real estate properties, including multifamily properties, multi-tenant medical office net lease properties and diversified single-tenant triple net lease properties that are held for investment. Its 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. Starwood Property Trust, Inc. was incorporated in 2009 and is headquartered in Miami Beach, Florida.

Latest Mortgage Real Estate Investment Trusts (REITs) and Dynex Capital, Inc., Starwood Property Trust, Inc. Stock News

As of July 31, 2026, Dynex Capital, Inc. had a $3.1 billion market capitalization, compared to the Mortgage Real Estate Investment Trusts (REITs) median of $621.0 million. Dynex Capital, Inc.’s stock is down 9.3% in 2026, up 0.9% in the previous five trading days and up 1.52% in the past year.

Currently, Dynex Capital, Inc.’s price-earnings ratio is 5.4. Dynex Capital, Inc.’s trailing 12-month revenue is $502.3 million with a 86.8% net profit margin. As of July 31, 2026, Dynex Capital, Inc. has not reported significant year-over-year quarterly sales. Analysts expect adjusted earnings to reach $1.408 per share for the current fiscal year. Dynex Capital, Inc. currently has a 16.1% dividend yield.

As of July 31, 2026, Starwood Property Trust, Inc. had a $5.9 billion market cap, putting it in the 70th percentile of all stocks. Starwood Property Trust, Inc.’s stock is down 11.3% in 2026, down 3.3% in the previous five trading days and down 18.47% in the past year.

Currently, Starwood Property Trust, Inc.’s price-earnings ratio is 16.8. Starwood Property Trust, Inc.’s trailing 12-month revenue is $580.8 million with a 60.5% net profit margin. Year-over-year quarterly sales growth most recently was 21.8%. Analysts expect adjusted earnings to reach $1.691 per share for the current fiscal year. Starwood Property Trust, Inc. currently has a 12.0% dividend yield.

How We Compare Dynex Capital, Inc., Starwood Property Trust and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Dynex Capital, Inc., Starwood Property Trust and Inc.’s stock grades to see how they measure up against one another.

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Dynex Capital, Inc., Starwood Property Trust and Inc. Stock Value Grades

Company Ticker Value
Dynex Capital, Inc. DX C
Starwood Property Trust, Inc. STWD C

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Dynex Capital, Inc. has a Value Score of 50, which is Average. Starwood Property Trust, Inc. has a Value Score of 58, which is Average.

The Value Stock Winner: No Clear Winner

Neither Dynex Capital, Inc., Starwood Property Trust or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Dynex Capital, Inc., Starwood Property Trust or Inc. is the better investment when it comes to value.

Dynex Capital, Inc., Starwood Property Trust and Inc. Growth Grades

Company Ticker Growth
Dynex Capital, Inc. DX B
Starwood Property Trust, Inc. STWD F

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Dynex Capital, Inc. has a Growth Score of 64, which is Strong. Starwood Property Trust, Inc. has a Growth Score of 13, which is Very Weak.

The Growth Grade Winner: Dynex Capital, Inc.

As you can clearly see from the Growth Grade breakdown above, Dynex Capital, Inc. has a more attractive growth grade than Starwood Property Trust, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Dynex Capital, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Dynex Capital, Inc., Starwood Property Trust and Inc.’s Quality Grades

Company Ticker Quality
Dynex Capital, Inc. DX F
Starwood Property Trust, Inc. STWD D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Dynex Capital, Inc. has a Quality Score of 8, which is Very Weak. Starwood Property Trust, Inc. has a Quality Score of 31, which is Weak.

The Quality Stock Winner: No Clear Winner

Neither Dynex Capital, Inc., Starwood Property Trust or Inc. has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Dynex Capital, Inc., Starwood Property Trust or Inc. is the better investment when it comes to quality.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Dynex Capital, Inc., Starwood Property Trust and Inc. Grades

In addition to Growth, Value and Quality, A+ Investor also provides grades for Momentum and Estimate Revisions.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Dynex Capital, Inc., Starwood Property Trust and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Dynex Capital, Inc., Starwood Property Trust or Inc. Stock?

Overall, Dynex Capital, Inc. stock has a Value Score of 50, Growth Score of 64 and Quality Score of 8.

Starwood Property Trust, Inc. stock has a Value Score of 58, Growth Score of 13 and Quality Score of 31.

Comparing Dynex Capital, Inc., Starwood Property Trust and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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