WallStSmart

MFA Financial Inc (MFA)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 632% more annual revenue ($2.38B vs $325.40M). NLY leads profitability with a 85.1% profit margin vs 54.3%. MFA appears more attractively valued with a PEG of 2.48. NLY earns a higher WallStSmart Score of 75/100 (B).

MFA

Strong Buy

67

out of 100

Grade: B-

Growth: 5.7Profit: 7.5Value: 8.0Quality: 5.3
Piotroski: 4/9

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

MFAOvervalued (-9.9%)

Margin of Safety

-9.9%

Fair Value

$8.84

Current Price

$9.85

$1.01 premium

UndervaluedFair: $8.84Overvalued
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

MFA5 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.3%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
61.7%10/10

Strong operational efficiency at 61.7%

Revenue GrowthGrowth
111.3%10/10

Revenue surging 111.3% year-over-year

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

MFA3 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$968.82M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

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 : MFA

The strongest argument for MFA centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 54.3% and operating margin at 61.7%. Revenue growth of 111.3% 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 : MFA

The primary concerns for MFA are PEG Ratio, Market Cap, EPS Growth.

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

MFA carries more volatility with a beta of 1.64 — 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.

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

Bottom Line

NLY scores higher overall (75/100 vs 67/100), backed by strong 85.1% margins and 113.9% 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.

MFA Financial Inc

REAL ESTATE · REIT - MORTGAGE · USA

MFA Financial, Inc., is a real estate investment trust (REIT) 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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