WallStSmart

Ellington Financial Inc. (EFC)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 525% more annual revenue ($2.50B vs $399.87M). NLY leads profitability with a 87.4% profit margin vs 53.4%. EFC appears more attractively valued with a PEG of 0.86. EFC earns a higher WallStSmart Score of 80/100 (B+).

EFC

Strong Buy

80

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 7.7Quality: 4.0
Piotroski: 3/9

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 4.7Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EFC.

NLYSignificantly Overvalued (-37.9%)

Margin of Safety

-37.9%

Fair Value

$16.54

Current Price

$21.22

$4.68 premium

UndervaluedFair: $16.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EFC6 strengths · Avg: 10.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.4%10/10

Keeps 53 of every $100 in revenue as profit

Operating MarginProfitability
59.4%10/10

Strong operational efficiency at 59.4%

Revenue GrowthGrowth
76.5%10/10

Revenue surging 76.5% year-over-year

EPS GrowthGrowth
127.0%10/10

Earnings expanding 127.0% YoY

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
87.4%10/10

Keeps 87 of every $100 in revenue as profit

Operating MarginProfitability
81.0%10/10

Strong operational efficiency at 81.0%

Revenue GrowthGrowth
48.8%10/10

Revenue surging 48.8% year-over-year

EPS GrowthGrowth
122.5%10/10

Earnings expanding 122.5% YoY

Areas to Watch

EFC3 concerns · Avg: 2.3/10
Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
9.211/10

Elevated debt levels

NLY4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
32.032/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.90B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.562/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EFC

The strongest argument for EFC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.4% and operating margin at 59.4%. Revenue growth of 76.5% 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 87.4% and operating margin at 81.0%. Revenue growth of 48.8% demonstrates continued momentum.

Bear Case : EFC

The primary concerns for EFC are Market Cap, Piotroski F-Score, Debt/Equity. Debt-to-equity of 9.21 is elevated, increasing financial risk.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 7.18 is elevated, increasing financial risk.

Key Dynamics to Monitor

NLY carries more volatility with a beta of 1.25 — expect wider price swings.

EFC is growing revenue faster at 76.5% — sustainability is the question.

EFC generates stronger free cash flow (147M), providing more financial flexibility.

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

Bottom Line

EFC scores higher overall (80/100 vs 77/100), backed by strong 53.4% margins and 76.5% 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.

Ellington Financial Inc.

REAL ESTATE · REIT - MORTGAGE · USA

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, business-related and other financial assets in the United States. The company is headquartered in Old Greenwich, Connecticut.

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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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