Head-To-Head Analysis: Annaly Capital Management (NYSE:NLY) & AGNC Investment (NASDAQ:AGNCZ)

AGNC Investment (NASDAQ:AGNCZ) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Institutional & Insider Ownership

51.6% of Annaly Capital Management shares are owned by institutional investors. 0.2% of Annaly Capital Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares AGNC Investment and Annaly Capital Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A
Annaly Capital Management	$5.96 billion	2.89	$2.03 billion	$3.99	5.72

Annaly Capital Management has higher revenue and earnings than AGNC Investment.

Profitability

This table compares AGNC Investment and Annaly Capital Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
Annaly Capital Management	43.66%	16.00%	1.69%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AGNC Investment and Annaly Capital Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
Annaly Capital Management	0	4	7	1	2.75

Annaly Capital Management has a consensus target price of $24.33, indicating a potential upside of 6.54%. Given Annaly Capital Management’s stronger consensus rating and higher probable upside, analysts plainly believe Annaly Capital Management is more favorable than AGNC Investment.

Summary

Annaly Capital Management beats AGNC Investment on 10 of the 10 factors compared between the two stocks.

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.