Granite Point Mortgage Trust (NYSE: GPMT) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Annaly Capital Management pays an annual dividend of $1.20 per share and has a dividend yield of 10.2%. Annaly Capital Management pays out 48.0% of its earnings in the form of a dividend.

Profitability

This table compares Granite Point Mortgage Trust and Annaly Capital Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Point Mortgage Trust N/A N/A N/A
Annaly Capital Management 104.56% 11.59% 1.52%

Analyst Recommendations

This is a summary of recent ratings for Granite Point Mortgage Trust and Annaly Capital Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Point Mortgage Trust 0 2 3 0 2.60
Annaly Capital Management 1 3 2 0 2.17

Granite Point Mortgage Trust currently has a consensus price target of $19.50, indicating a potential upside of 9.74%. Annaly Capital Management has a consensus price target of $11.08, indicating a potential downside of 6.23%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Granite Point Mortgage Trust is more favorable than Annaly Capital Management.

Institutional and Insider Ownership

16.4% of Granite Point Mortgage Trust shares are held by institutional investors. Comparatively, 51.0% of Annaly Capital Management shares are held by institutional investors. 0.4% of Annaly Capital Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Granite Point Mortgage Trust and Annaly Capital Management’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Granite Point Mortgage Trust N/A N/A N/A N/A N/A
Annaly Capital Management $2.21 billion 6.20 $1.43 billion $2.50 4.73

Annaly Capital Management has higher revenue and earnings than Granite Point Mortgage Trust.

Summary

Annaly Capital Management beats Granite Point Mortgage Trust on 7 of the 11 factors compared between the two stocks.

Granite Point Mortgage Trust Company Profile

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

Annaly Capital Management Company Profile

Annaly Capital Management, Inc. is a mortgage real estate investment trust (REIT). The Company owns a portfolio of real estate related investments. Its investment groups primarily consist of Agency, which invests primarily in various types of Agency mortgage-backed securities and related derivatives to hedge these investments; Residential credit, which invests primarily in non-Agency mortgage-backed assets within securitized products and residential mortgage loan markets; Commercial real estate, which originates and invests in commercial mortgage loans, securities, and other commercial real estate investments, and Middle market, which provides customized debt financing to middle-market businesses. Its business operations consist of Annaly Commercial Real Estate Group, Inc., which is its subsidiary that specializes in originating or acquiring, financing and managing commercial loans and other commercial real estate debt; Annaly Middle Market Lending LLC, and RCap Securities, Inc.

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