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 1471% more annual revenue ($2.38B vs $151.56M). NLY leads profitability with a 85.1% profit margin vs 63.6%. NREF trades at a lower P/E of 4.5x. NREF earns a higher WallStSmart Score of 78/100 (B+).

NLY

Strong Buy

75

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56

NREF

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 8.0Value: 8.3Quality: 4.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$135.72

Current Price

$21.41

$114.31 discount

UndervaluedFair: $135.72Overvalued
NREFUndervalued (+89.1%)

Margin of Safety

+89.1%

Fair Value

$136.19

Current Price

$13.37

$122.82 discount

UndervaluedFair: $136.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

NREF6 strengths · Avg: 10.0/10
P/E RatioValuation
4.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
63.6%10/10

Keeps 64 of every $100 in revenue as profit

Operating MarginProfitability
77.0%10/10

Strong operational efficiency at 77.0%

Revenue GrowthGrowth
39.5%10/10

Revenue surging 39.5% year-over-year

EPS GrowthGrowth
108.5%10/10

Earnings expanding 108.5% YoY

Areas to Watch

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

NREF2 concerns · Avg: 2.0/10
Market CapQuality
$311.21M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
11.921/10

Elevated debt levels

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 85.1% and operating margin at 93.7%. Revenue growth of 113.9% 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 63.6% and operating margin at 77.0%. Revenue growth of 39.5% demonstrates continued momentum.

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.

Bear Case : NREF

The primary concerns for NREF are Market Cap, Debt/Equity. Debt-to-equity of 11.92 is elevated, increasing financial risk.

Key Dynamics to Monitor

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.

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

Bottom Line

NREF scores higher overall (78/100 vs 75/100), backed by strong 63.6% margins and 39.5% revenue growth. NLY offers better value entry with a 83.2% margin of safety. 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.

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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