WallStSmart

Lument Finance Trust Inc (LFT)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 10871% more annual revenue ($2.38B vs $21.71M). NLY leads profitability with a 85.1% profit margin vs 45.2%. NLY trades at a lower P/E of 7.3x. NLY earns a higher WallStSmart Score of 75/100 (B).

LFT

Hold

49

out of 100

Grade: D+

Growth: 3.0Profit: 7.0Value: 5.7Quality: 5.3
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

LFTSignificantly Overvalued (-92.7%)

Margin of Safety

-92.7%

Fair Value

$0.68

Current Price

$1.24

$0.56 premium

UndervaluedFair: $0.68Overvalued
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

LFT4 strengths · Avg: 9.5/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
45.2%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
39.6%10/10

Strong operational efficiency at 39.6%

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

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

LFT4 concerns · Avg: 2.8/10
Market CapQuality
$72.26M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-44.4%2/10

Revenue declined 44.4%

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 : LFT

The strongest argument for LFT centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 45.2% and operating margin at 39.6%.

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 : LFT

The primary concerns for LFT are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.12 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

LFT 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.

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

Bottom Line

NLY scores higher overall (75/100 vs 49/100), backed by strong 85.1% margins and 113.9% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Lument Finance Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing, financing and managing a portfolio of commercial real estate 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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