Analyzing Annaly Capital Management (NYSE:NLY) and AGNC Investment (NASDAQ:AGNCZ)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Annaly Capital Management and AGNC Investment, as provided by MarketBeat.

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

Annaly Capital Management presently has a consensus target price of $24.33, suggesting a potential upside of 6.89%. Given Annaly Capital Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Annaly Capital Management is more favorable than AGNC Investment.

Earnings and Valuation

This table compares Annaly Capital Management and AGNC Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	$5.96 billion	2.88	$2.03 billion	$3.99	5.71
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

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

Profitability

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

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

Institutional and Insider Ownership

51.6% of Annaly Capital Management shares are held by institutional investors. 0.2% of Annaly Capital Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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.