Annaly Capital Management (NYSE: NLY) is one of 35 publicly-traded companies in the “Mortgage 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 profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

49.8% of Annaly Capital Management shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.4% of Annaly Capital Management shares are owned by company insiders. Comparatively, 3.2% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Annaly Capital Management has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Annaly Capital Management’s peers have a beta of 0.65, suggesting that their average share price is 35% less volatile than the S&P 500.

Dividends

Annaly Capital Management pays an annual dividend of $1.20 per share and has a dividend yield of 10.7%. 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 92.0% of their earnings in the form of a dividend. Annaly Capital Management is clearly a better dividend stock than its peers, given its higher yield and lower 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 104.56% 11.59% 1.52%
Annaly Capital Management Competitors 51.30% 10.08% 2.56%

Analyst Ratings

This is a summary of current ratings for Annaly Capital Management and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Annaly Capital Management 1 3 2 0 2.17
Annaly Capital Management Competitors 117 852 853 33 2.43

Annaly Capital Management currently has a consensus target price of $11.31, indicating a potential upside of 0.91%. As a group, “Mortgage REITs” companies have a potential upside of 8.37%. Given Annaly Capital Management’s peers stronger consensus rating and higher probable upside, analysts clearly believe Annaly Capital Management has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Annaly Capital Management $2.21 billion $1.43 billion 4.48
Annaly Capital Management Competitors $383.25 million $201.70 million 1.17

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

Summary

Annaly Capital Management peers beat Annaly Capital Management on 8 of the 15 factors compared.

Annaly Capital Management Company Profile

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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