Annaly Capital Management (NLY) & Its Peers Financial Contrast

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

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

Analyst Ratings

This is a summary of recent recommendations for Annaly Capital Management and its peers, as provided 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	685	1983	2135	136	2.35

Annaly Capital Management currently has a consensus target price of $21.67, indicating a potential upside of 15.71%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 49.64%. Given Annaly Capital Management’s peers higher probable upside, analysts clearly believe Annaly Capital Management has less favorable growth aspects than its peers.

Dividends

Annaly Capital Management pays an annual dividend of $3.00 per share and has a dividend yield of 16.0%. 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 17.0% and pay out -108.1% 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Annaly Capital Management and its peers’ 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	-13.10%	7.60%	1.04%

Earnings & Valuation

This table compares Annaly Capital Management and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Annaly Capital Management	$5.96 billion	$2.03 billion	13.09
Annaly Capital Management Competitors	$627.67 million	$157.00 million	14.31

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

Risk & Volatility

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

Summary

Annaly Capital Management beats its peers 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.