WallStSmart

Annaly Capital Management, Inc. (NLY)vsPennyMac Mortgage Investment Trust (PMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 230% more annual revenue ($2.50B vs $758.84M). NLY leads profitability with a 87.4% profit margin vs 18.8%. PMT appears more attractively valued with a PEG of 0.76. 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

PMT

Strong Buy

69

out of 100

Grade: B-

Growth: 5.0Profit: 6.5Value: 9.3Quality: 3.3
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYOvervalued (-13.9%)

Margin of Safety

-13.9%

Fair Value

$20.02

Current Price

$22.61

$2.59 premium

UndervaluedFair: $20.02Overvalued
PMTUndervalued (+82.9%)

Margin of Safety

+82.9%

Fair Value

$72.35

Current Price

$11.00

$61.35 discount

UndervaluedFair: $72.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
87.4%10/10

Keeps 87 of every $100 in revenue as profit

Operating MarginProfitability
81.0%10/10

Strong operational efficiency at 81.0%

Revenue GrowthGrowth
48.8%10/10

Revenue surging 48.8% year-over-year

EPS GrowthGrowth
122.5%10/10

Earnings expanding 122.5% YoY

PMT4 strengths · Avg: 9.5/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

PEG RatioValuation
0.768/10

Growing faster than its price suggests

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

PMT4 concerns · Avg: 2.8/10
Market CapQuality
$966.20M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-56.6%2/10

Revenue declined 56.6%

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 87.4% and operating margin at 81.0%. Revenue growth of 48.8% demonstrates continued momentum.

Bull Case : PMT

The strongest argument for PMT centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 18.8% and operating margin at 32.7%. PEG of 0.76 suggests the stock is reasonably priced for its growth.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 6.95 is elevated, increasing financial risk.

Bear Case : PMT

The primary concerns for PMT are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 10.12 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

NLY carries more volatility with a beta of 1.27 — expect wider price swings.

NLY is growing revenue faster at 48.8% — sustainability is the question.

NLY generates stronger free cash flow (-1.9B), providing more financial flexibility.

Bottom Line

NLY scores higher overall (77/100 vs 69/100), backed by strong 87.4% margins and 48.8% revenue growth. PMT offers better value entry with a 82.9% 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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PennyMac Mortgage Investment Trust

REAL ESTATE · REIT - MORTGAGE · USA

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in mortgage-related assets in the United States. The company is headquartered in Westlake Village, California.

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