WallStSmart

Apollo Commercial Real Estate Finance Inc (ARI)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 421% more annual revenue ($3.25B vs $624.29M). NLY leads profitability with a 90.7% profit margin vs 21.1%. ARI appears more attractively valued with a PEG of 1.33. NLY earns a higher WallStSmart Score of 77/100 (B+).

ARI

Strong Buy

75

out of 100

Grade: B

Growth: 5.3Profit: 7.0Value: 7.0Quality: 6.5
Piotroski: 4/9Altman Z: 0.23

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.0Value: 5.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARI.

NLYOvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$20.96

Current Price

$21.23

$0.27 premium

UndervaluedFair: $20.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARI6 strengths · Avg: 9.7/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
91.2%10/10

Strong operational efficiency at 91.2%

Revenue GrowthGrowth
525.0%10/10

Revenue surging 525.0% year-over-year

Profit MarginProfitability
21.1%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.309/10

Conservative balance sheet, low leverage

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
90.7%10/10

Keeps 91 of every $100 in revenue as profit

Operating MarginProfitability
91.6%10/10

Strong operational efficiency at 91.6%

Revenue GrowthGrowth
479.4%10/10

Revenue surging 479.4% year-over-year

EPS GrowthGrowth
3426.0%10/10

Earnings expanding 3426.0% YoY

Areas to Watch

ARI3 concerns · Avg: 2.3/10
Market CapQuality
$868.96M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-10.0%2/10

Earnings declined 10.0%

Altman Z-ScoreHealth
0.232/10

Distress zone — elevated risk

NLY4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
32.032/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.562/10

Distress zone — elevated risk

Debt/EquityHealth
7.381/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ARI

The strongest argument for ARI centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.1% and operating margin at 91.2%. Revenue growth of 525.0% demonstrates continued momentum.

Bull Case : NLY

The strongest argument for NLY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 90.7% and operating margin at 91.6%. Revenue growth of 479.4% demonstrates continued momentum.

Bear Case : ARI

The primary concerns for ARI are Market Cap, EPS Growth, Altman Z-Score.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Altman Z-Score. Debt-to-equity of 7.38 is elevated, increasing financial risk.

Key Dynamics to Monitor

ARI carries more volatility with a beta of 1.45 — expect wider price swings.

ARI is growing revenue faster at 525.0% — sustainability is the question.

NLY generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NLY scores higher overall (77/100 vs 75/100), backed by strong 90.7% margins and 479.4% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Apollo Commercial Real Estate Finance Inc

REAL ESTATE · REIT - MORTGAGE · USA

Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust (REIT) that originates, acquires, invests, and manages commercial first mortgage loans, subordinated financings, and other real estate-related commercial debt investments in the United States. . The company is headquartered in New York, New York.

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Annaly Capital Management, Inc.

REAL ESTATE · REIT - MORTGAGE · USA

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company is headquartered in New York, New York.

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