WallStSmart

Annaly Capital Management, Inc. (NLY)vsReady Capital Corp (RC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates -1150% more annual revenue ($2.50B vs $-238.20M). NLY leads profitability with a 87.4% profit margin vs 0.0%. RC appears more attractively valued with a PEG of 2.74. NLY earns a higher WallStSmart Score of 77/100 (B+).

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 4.7Quality: 2.5
Piotroski: 3/9Altman Z: -0.56

RC

Buy

54

out of 100

Grade: C-

Growth: 6.7Profit: 4.5Value: 4.0Quality: 4.5
Piotroski: 6/9Altman Z: 0.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYSignificantly Overvalued (-37.9%)

Margin of Safety

-37.9%

Fair Value

$16.54

Current Price

$21.22

$4.68 premium

UndervaluedFair: $16.54Overvalued

Intrinsic value data unavailable for RC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.1x10/10

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

RC3 strengths · Avg: 10.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
162.7%10/10

Strong operational efficiency at 162.7%

EPS GrowthGrowth
305.3%10/10

Earnings expanding 305.3% YoY

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

RC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Market CapQuality
$274.80M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

PEG RatioValuation
2.742/10

Expensive relative to growth rate

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 : RC

The strongest argument for RC centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 7.18 is elevated, increasing financial risk.

Bear Case : RC

The primary concerns for RC are Revenue Growth, Market Cap, Profit Margin. Debt-to-equity of 3.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

NLY profiles as a growth stock while RC is a value play — different risk/reward profiles.

RC carries more volatility with a beta of 1.49 — expect wider price swings.

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

RC generates stronger free cash flow (590M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (77/100 vs 54/100), backed by strong 87.4% margins and 48.8% revenue growth. 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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Ready Capital Corp

REAL ESTATE · REIT - MORTGAGE · USA

Ready Capital Corporation, is a real estate finance company in the United States. The company is headquartered in New York, New York.

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