WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 623% more annual revenue ($2.38B vs $329.39M). NLY leads profitability with a 85.1% profit margin vs 44.6%. EFC appears more attractively valued with a PEG of 0.86. NLY earns a higher WallStSmart Score of 75/100 (B).

EFC

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 7.3Quality: 3.3
Piotroski: 2/9

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

EFCSignificantly Overvalued (-60.2%)

Margin of Safety

-60.2%

Fair Value

$8.09

Current Price

$11.51

$3.42 premium

UndervaluedFair: $8.09Overvalued
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

EFC5 strengths · Avg: 9.6/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.6%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
32.1%10/10

Strong operational efficiency at 32.1%

PEG RatioValuation
0.868/10

Growing faster than its price suggests

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

EFC4 concerns · Avg: 2.5/10
Market CapQuality
$1.41B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

EPS GrowthGrowth
-45.3%2/10

Earnings declined 45.3%

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 : EFC

The strongest argument for EFC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.6% and operating margin at 32.1%. PEG of 0.86 suggests the stock is reasonably priced for its growth.

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 : EFC

The primary concerns for EFC are Market Cap, Piotroski F-Score, Revenue Growth. Debt-to-equity of 8.82 is elevated, increasing financial risk.

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

EFC profiles as a declining stock while NLY is a growth play — different risk/reward profiles.

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

NLY is growing revenue faster at 113.9% — sustainability is the question.

EFC generates stronger free cash flow (778M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (75/100 vs 59/100), backed by strong 85.1% margins and 113.9% revenue growth. Both earn "Strong Buy" and "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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