Comparing Annaly Capital Management (NLY) and Its Rivals

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 similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets 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	680	1981	2134	136	2.35

Annaly Capital Management presently has a consensus target price of $21.67, indicating a potential upside of 14.93%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 45.64%. Given Annaly Capital Management’s rivals higher probable upside, analysts clearly believe Annaly Capital Management has less favorable growth aspects than its rivals.

Volatility and Risk

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

Valuation and Earnings

This table compares Annaly Capital Management and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Annaly Capital Management	$5.96 billion	$2.03 billion	13.18
Annaly Capital Management Competitors	$631.94 million	$157.00 million	15.22

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.

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	-9.73%	7.41%	1.01%

Dividends

Annaly Capital Management pays an annual dividend of $3.00 per share and has a dividend yield of 15.9%. 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 16.6% and pay out -203.7% of their earnings in the form of a dividend. Annaly Capital Management has increased 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.

Institutional and Insider Ownership

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

Summary

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

About Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was incorporated in 1996 and is based in New York, New York.