Pacific Office Properties Trust (OTCMKTS:PCFO) and Redwood Trust (NYSE:RWT) Head to Head Analysis

Redwood Trust (NYSE:RWT) and Pacific Office Properties Trust (OTCMKTS:PCFO) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Redwood Trust and Pacific Office Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwood Trust	3.06%	4.83%	0.38%
Pacific Office Properties Trust	N/A	N/A	N/A

Institutional and Insider Ownership

74.3% of Redwood Trust shares are owned by institutional investors. 2.5% of Redwood Trust shares are owned by company insiders. Comparatively, 24.1% of Pacific Office Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Redwood Trust and Pacific Office Properties Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwood Trust	0	3	4	1	2.75
Pacific Office Properties Trust	0	0	0	0	N/A

Redwood Trust presently has a consensus target price of $7.66, suggesting a potential upside of 20.95%. Given Redwood Trust’s higher probable upside, equities analysts clearly believe Redwood Trust is more favorable than Pacific Office Properties Trust.

Earnings & Valuation

This table compares Redwood Trust and Pacific Office Properties Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwood Trust	$724.00 million	1.16	-$2.27 million	$0.07	90.43
Pacific Office Properties Trust	N/A	N/A	N/A	N/A	N/A

Pacific Office Properties Trust has lower revenue, but higher earnings than Redwood Trust.

Summary

Redwood Trust beats Pacific Office Properties Trust on 8 of the 9 factors compared between the two stocks.

About Redwood Trust

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Residential Investor Mortgage Banking segment operates a platform that originates business purpose loans to investors in single-family and multifamily residential properties and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential consumer and investor securitization activities, and business purpose lending bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. The company is elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.

About Pacific Office Properties Trust

Pacific Office Properties Trust, Inc. is a real estate investment trust, which owns and operates office properties. Its portfolio includes Davies Pacific Center, Pacific Business News Building, Pan Am Building, Waterfront Plaza, and City Square. The company was founded on March 19, 2008 and is headquartered in Honolulu, HI.