Head to Head Review: Annaly Capital Management (NLY) vs. Its Rivals
Annaly Capital Management (NYSE: NLY) is one of 35 public companies in the “Mortgage REITs” industry, but how does it compare to its competitors? We will compare Annaly Capital Management to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
49.7% of Annaly Capital Management shares are held by institutional investors. Comparatively, 57.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.4% of Annaly Capital Management shares are held by company insiders. Comparatively, 3.2% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings for Annaly Capital Management and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Annaly Capital Management||1||3||2||0||2.17|
|Annaly Capital Management Competitors||116||844||839||33||2.43|
Annaly Capital Management presently has a consensus price target of $11.25, suggesting a potential downside of 0.35%. As a group, “Mortgage REITs” companies have a potential upside of 4.56%. Given Annaly Capital Management’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Annaly Capital Management has less favorable growth aspects than its competitors.
Annaly Capital Management pays an annual dividend of $1.20 per share and has a dividend yield of 10.6%. Annaly Capital Management pays out 48.0% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.5% and pay out 72.5% of their earnings in the form of a dividend. Annaly Capital Management is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Annaly Capital Management and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Annaly Capital Management||$2,210.95||$1,433.75||4.52|
|Annaly Capital Management Competitors||$383.25||$201.70||4.90|
Annaly Capital Management has higher revenue and earnings than its competitors. Annaly Capital Management is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Annaly Capital Management has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Annaly Capital Management’s competitors have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.
This table compares Annaly Capital Management and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Annaly Capital Management||104.56%||11.85%||1.57%|
|Annaly Capital Management Competitors||48.92%||9.82%||2.55%|
Annaly Capital Management competitors beat Annaly Capital Management on 8 of the 15 factors compared.
About Annaly Capital Management
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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