MRCC vs. RWT

Last updated Apr 2, 2026

Compare and contrast key facts about Monroe Capital Corporation (MRCC) and Redwood Trust, Inc. (RWT).

Performance

MRCC vs. RWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Monroe Capital Corporation (MRCC) and Redwood Trust, Inc. (RWT). The values are adjusted to include any dividend payments, if applicable.

MRCC vs. RWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MRCC Monroe Capital Corporation	-27.31%	-14.59%	36.74%	-5.68%	-15.37%	53.23%	-15.17%	27.79%	-22.10%	-1.64%
RWT Redwood Trust, Inc.	5.45%	-4.08%	-2.60%	21.61%	-42.26%	60.13%	-42.70%	18.16%	9.40%	4.49%

Fundamentals

Market Cap MRCC : $98.36M RWT : $713.85M
EPS MRCC : $0.53 RWT : -$0.61
PS Ratio MRCC : 3.17 RWT : 3.00
PB Ratio MRCC : 0.59 RWT : 0.73
Total Revenue (TTM) MRCC : $31.01M RWT : $243.15M
Gross Profit (TTM) MRCC : $1.44M RWT : $154.79M
EBITDA (TTM) MRCC : -$2.33M RWT : $733.18M

Returns By Period

In the year-to-date period, MRCC achieves a -27.31% return, which is significantly lower than RWT's 5.45% return. Over the past 10 years, MRCC has underperformed RWT with an annualized return of 0.67%, while RWT has yielded a comparatively higher 0.78% annualized return.

MRCC

• 1D: -1.30%
• 1M: -20.99%
• YTD: -27.31%
• 6M: -32.55%
• 1Y: -33.25%
• 3Y*: -4.69%
• 5Y*: -4.56%
• 10Y*: 0.67%

RWT

• 1D: 0.53%
• 1M: -4.25%
• YTD: 5.45%
• 6M: 2.21%
• 1Y: 6.05%
• 3Y*: 5.05%
• 5Y*: -2.17%
• 10Y*: 0.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

MRCC vs. RWT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MRCC

MRCC Risk / Return Rank: 7
MRCC Sharpe Ratio Rank: 7
MRCC Sortino Ratio Rank: 10
MRCC Omega Ratio Rank: 8
MRCC Calmar Ratio Rank: 11
MRCC Martin Ratio Rank: 1

RWT

RWT Risk / Return Rank: 45
RWT Sharpe Ratio Rank: 46
RWT Sortino Ratio Rank: 43
RWT Omega Ratio Rank: 42
RWT Calmar Ratio Rank: 48
RWT Martin Ratio Rank: 48

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MRCC vs. RWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Monroe Capital Corporation (MRCC) and Redwood Trust, Inc. (RWT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MRCC	RWT	Difference
Sharpe ratio Return per unit of total volatility	-0.84	0.15	-0.99
Sortino ratio Return per unit of downside risk	-1.07	0.54	-1.61
Omega ratio Gain probability vs. loss probability	0.84	1.07	-0.23
Calmar ratio Return relative to maximum drawdown	-0.82	0.29	-1.10
Martin ratio Return relative to average drawdown	-2.27	0.64	-2.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MRCC vs. RWT - Sharpe Ratio Comparison

The current MRCC Sharpe Ratio is -0.84, which is lower than the RWT Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of MRCC and RWT, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	MRCC	RWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.84	0.15	-0.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.16	-0.06	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.02	0.02	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	0.12	-0.05

Correlation

The correlation between MRCC and RWT is 0.22, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

MRCC vs. RWT - Dividend Comparison

MRCC's dividend yield for the trailing twelve months is around 16.96%, more than RWT's 12.77% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MRCC Monroe Capital Corporation	16.96%	14.60%	11.76%	14.15%	11.71%	8.91%	13.70%	12.89%	14.58%	10.18%	9.10%	10.70%
RWT Redwood Trust, Inc.	12.77%	13.02%	10.26%	9.58%	13.61%	5.91%	8.26%	7.26%	7.83%	7.56%	7.36%	8.48%

Drawdowns

MRCC vs. RWT - Drawdown Comparison

The maximum MRCC drawdown since its inception was -57.63%, smaller than the maximum RWT drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for MRCC and RWT.

Drawdown Indicators

	MRCC	RWT	Difference
Max Drawdown Largest peak-to-trough decline	-57.63%	-88.91%	+31.28%
Max Drawdown (1Y) Largest decline over 1 year	-42.08%	-19.91%	-22.17%
Max Drawdown (5Y) Largest decline over 5 years	-45.80%	-55.83%	+10.03%
Max Drawdown (10Y) Largest decline over 10 years	-57.63%	-85.40%	+27.77%
Current Drawdown Current decline from peak	-40.10%	-55.63%	+15.53%
Average Drawdown Average peak-to-trough decline	-11.08%	-45.52%	+34.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.16%	8.95%	+6.21%

Volatility

MRCC vs. RWT - Volatility Comparison

Monroe Capital Corporation (MRCC) has a higher volatility of 29.25% compared to Redwood Trust, Inc. (RWT) at 12.39%. This indicates that MRCC's price experiences larger fluctuations and is considered to be riskier than RWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MRCC	RWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.25%	12.39%	+16.86%
Volatility (6M) Calculated over the trailing 6-month period	34.30%	29.42%	+4.88%
Volatility (1Y) Calculated over the trailing 1-year period	39.55%	40.24%	-0.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.97%	35.03%	-7.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.29%	49.00%	-15.71%

Financials

MRCC vs. RWT - Profitability Comparison

The chart below illustrates the profitability comparison between Monroe Capital Corporation and Redwood Trust, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

MRCC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Monroe Capital Corporation reported a gross profit of 0.00 and revenue of 18.21M. Therefore, the gross margin over that period was 0.0%.

RWT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported a gross profit of 0.00 and revenue of 61.30M. Therefore, the gross margin over that period was 0.0%.

MRCC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Monroe Capital Corporation reported an operating income of 0.00 and revenue of 18.21M, resulting in an operating margin of 0.0%.

RWT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported an operating income of 0.00 and revenue of 61.30M, resulting in an operating margin of 0.0%.

MRCC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Monroe Capital Corporation reported a net income of 13.88M and revenue of 18.21M, resulting in a net margin of 76.2%.

RWT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported a net income of 3.00M and revenue of 61.30M, resulting in a net margin of 4.9%.