Annaly Capital Management (NYSE: NLY) is one of 32 publicly-traded companies in the “Mortgage REITs” industry, but how does it contrast to its competitors? We will compare Annaly Capital Management to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.
Volatility & Risk
Annaly Capital Management has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Annaly Capital Management’s competitors have a beta of 0.65, suggesting that their average stock price is 35% less volatile than the S&P 500.
Institutional and Insider Ownership
51.0% of Annaly Capital Management shares are held by institutional investors. Comparatively, 56.7% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.4% of Annaly Capital Management shares are held by insiders. Comparatively, 3.6% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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. As a group, “Mortgage REITs” companies pay a dividend yield of 9.5% and pay out 89.7% 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 revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Annaly Capital Management||$2.21 billion||$1.43 billion||4.71|
|Annaly Capital Management Competitors||$371.19 million||$190.39 million||2.01|
Annaly Capital Management has higher revenue and earnings than its competitors. Annaly Capital Management is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent recommendations and price targets 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||119||862||885||33||2.44|
Annaly Capital Management currently has a consensus price target of $11.08, indicating a potential downside of 5.83%. As a group, “Mortgage REITs” companies have a potential upside of 5.34%. Given Annaly Capital Management’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Annaly Capital Management has less favorable growth aspects than its competitors.
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%||11.59%||1.52%|
|Annaly Capital Management Competitors||65.77%||10.71%||2.63%|
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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