WallStSmart

Dynex Capital Inc (DX)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 540% more annual revenue ($2.38B vs $372.11M). DX leads profitability with a 85.7% profit margin vs 85.1%. DX appears more attractively valued with a PEG of 0.71. DX earns a higher WallStSmart Score of 82/100 (A-).

DX

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.3Profit: 8.0Value: 10.0Quality: 5.0

NLY

Strong Buy

75

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DXUndervalued (+87.9%)

Margin of Safety

+87.9%

Fair Value

$115.60

Current Price

$12.69

$102.91 discount

UndervaluedFair: $115.60Overvalued
NLYUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$135.72

Current Price

$21.41

$114.31 discount

UndervaluedFair: $135.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DX6 strengths · Avg: 10.0/10
P/E RatioValuation
5.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.7%10/10

Keeps 86 of every $100 in revenue as profit

Operating MarginProfitability
91.8%10/10

Strong operational efficiency at 91.8%

Revenue GrowthGrowth
234.8%10/10

Revenue surging 234.8% year-over-year

EPS GrowthGrowth
92.3%10/10

Earnings expanding 92.3% YoY

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.1%10/10

Keeps 85 of every $100 in revenue as profit

Operating MarginProfitability
93.7%10/10

Strong operational efficiency at 93.7%

Revenue GrowthGrowth
113.9%10/10

Revenue surging 113.9% year-over-year

EPS GrowthGrowth
81.1%10/10

Earnings expanding 81.1% YoY

Areas to Watch

DX0 concerns · Avg: 0/10

No major concerns identified

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
6.951/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DX

The strongest argument for DX centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 85.7% and operating margin at 91.8%. Revenue growth of 234.8% 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 85.1% and operating margin at 93.7%. Revenue growth of 113.9% demonstrates continued momentum.

Bear Case : DX

No major red flags identified for DX, but monitor valuation.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Altman Z-Score. Debt-to-equity of 6.95 is elevated, increasing financial risk.

Key Dynamics to Monitor

NLY carries more volatility with a beta of 1.30 — expect wider price swings.

DX is growing revenue faster at 234.8% — sustainability is the question.

NLY generates stronger free cash flow (472M), providing more financial flexibility.

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

Bottom Line

DX scores higher overall (82/100 vs 75/100), backed by strong 85.7% margins and 234.8% revenue growth. NLY offers better value entry with a 83.2% margin of safety. Both earn "Exceptional 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.

Dynex Capital Inc

REAL ESTATE · REIT - MORTGAGE · USA

Dynex Capital, Inc., a mortgage real estate investment trust, invests in Mortgage-Backed Securities (MBS) on a leveraged basis in the United States. The company is headquartered in Glen Allen, Virginia.

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.

Visit Website →

Want to dig deeper into these stocks?