Annaly Capital Management (NLY) & Its Rivals Critical Contrast

Annaly Capital Management (NYSE:NLY) is one of 52 public companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it contrast to its rivals? We will compare Annaly Capital Management to related businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations for Annaly Capital Management and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	0	4	7	1	2.75
Annaly Capital Management Competitors	691	1993	2139	136	2.35

Annaly Capital Management presently has a consensus price target of $21.67, indicating a potential upside of 23.28%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 57.03%. Given Annaly Capital Management’s rivals higher possible upside, analysts plainly believe Annaly Capital Management has less favorable growth aspects than its rivals.

Profitability

This table compares Annaly Capital Management and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	15.52%	16.65%	1.72%
Annaly Capital Management Competitors	-13.29%	7.67%	1.05%

Dividends

Annaly Capital Management pays an annual dividend of $3.00 per share and has a dividend yield of 17.1%. Annaly Capital Management pays out 209.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 17.5% and pay out -110.1% of their earnings in the form of a dividend. Annaly Capital Management has raised its dividend for 2 consecutive years. Annaly Capital Management lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

51.6% of Annaly Capital Management shares are held by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by institutional investors. 0.2% of Annaly Capital Management shares are held by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Annaly Capital Management has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Annaly Capital Management’s rivals have a beta of 1.21, suggesting that their average stock price is 21% more volatile than the S&P 500.

Earnings & Valuation

This table compares Annaly Capital Management and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Annaly Capital Management	$5.96 billion	$2.03 billion	12.29
Annaly Capital Management Competitors	$762.88 million	$157.00 million	18.14

Annaly Capital Management has higher revenue and earnings than its rivals. Annaly Capital Management is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Annaly Capital Management beats its rivals on 9 of the 15 factors compared.

Annaly Capital Management Company Profile

Annaly Capital Management, Inc. is a mortgage real estate investment trust (REIT) that invests in assets tied to the U.S. housing and mortgage markets. Its portfolio includes agency mortgage-backed securities, residential credit investments and mortgage servicing rights. The company’s agency investments include mortgage-backed securities whose principal and interest payments are guaranteed by government-sponsored enterprises or government agencies. Its residential credit activities include investments in mortgage loans and securities that do not carry those guarantees, while its servicing rights relate to the collection and administration of mortgage payments.