WallStSmart

Annaly Capital Management, Inc. (NLY)vsNexpoint Real Estate Finance Inc (NREF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 1991% more annual revenue ($3.25B vs $155.63M). NLY leads profitability with a 90.7% profit margin vs 66.5%. NLY trades at a lower P/E of 5.5x. NLY earns a higher WallStSmart Score of 77/100 (B+).

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.0Value: 5.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56

NREF

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 8.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYOvervalued (-8.7%)

Margin of Safety

-8.7%

Fair Value

$20.99

Current Price

$22.75

$1.76 premium

UndervaluedFair: $20.99Overvalued
NREFUndervalued (+62.1%)

Margin of Safety

+62.1%

Fair Value

$39.37

Current Price

$17.19

$22.18 discount

UndervaluedFair: $39.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
90.7%10/10

Keeps 91 of every $100 in revenue as profit

Operating MarginProfitability
91.6%10/10

Strong operational efficiency at 91.6%

Revenue GrowthGrowth
479.4%10/10

Revenue surging 479.4% year-over-year

EPS GrowthGrowth
3426.0%10/10

Earnings expanding 3426.0% YoY

NREF4 strengths · Avg: 10.0/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Profit MarginProfitability
66.5%10/10

Keeps 67 of every $100 in revenue as profit

Operating MarginProfitability
69.4%10/10

Strong operational efficiency at 69.4%

Areas to Watch

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

NREF4 concerns · Avg: 2.3/10
Market CapQuality
$388.59M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-4.8%2/10

Revenue declined 4.8%

EPS GrowthGrowth
-39.2%2/10

Earnings declined 39.2%

Altman Z-ScoreHealth
0.192/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NLY

The strongest argument for NLY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 90.7% and operating margin at 91.6%. Revenue growth of 479.4% demonstrates continued momentum.

Bull Case : NREF

The strongest argument for NREF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 66.5% and operating margin at 69.4%.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 7.38 is elevated, increasing financial risk.

Bear Case : NREF

The primary concerns for NREF are Market Cap, Revenue Growth, EPS Growth. Debt-to-equity of 11.20 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

NLY carries more volatility with a beta of 1.24 — expect wider price swings.

NLY is growing revenue faster at 479.4% — sustainability is the question.

NREF generates stronger free cash flow (9M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (77/100 vs 58/100), backed by strong 90.7% margins and 479.4% revenue growth. NREF offers better value entry with a 62.1% margin of safety. 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.

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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Nexpoint Real Estate Finance Inc

REAL ESTATE · REIT - MORTGAGE · USA

NexPoint Real Estate Finance, Inc. is a real estate finance company in the United States. The company is headquartered in Dallas, Texas.

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