Analysts' Opinions Are Mixed on These Real Estate Stocks: Macerich (NYSE: MAC) and Ellington Financial (NYSE: EFC)We consider it the highest quality overall exposure to non-Agency lending and servicing... The total upside may not be as high compared to deeper discounted stocks like Redwood (RWT, Buy, $8.50 PT) if the Fed went on a rate cutting spree, but the drawdowns for both earnings and stock valuation are more contained when spreads are widening, plus we think EFC's scale and diversification make it the best calibrated and prepared for growth. We especially think EFC's track record deserves to support a more stable valuation when credit/RMBS spreads are relatively tight, like they are right now. We estimate it's backing into a ~15% gross cost of capital right now, including almost two-thirds of the return which is coming from the retained securities portfolio, where the asset yields for non-QM should especially have near-term support if the Fed delivers another rate cut next month.