WallStSmart

Annaly Capital Management, Inc. (NLY)vsRithm Capital Corp. (RITM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rithm Capital Corp. generates 70% more annual revenue ($4.24B vs $2.50B). NLY leads profitability with a 87.4% profit margin vs 17.0%. NLY trades at a lower P/E of 7.2x. 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

RITM

Strong Buy

69

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 8.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.24
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
RITMUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$73.52

Current Price

$9.84

$63.68 discount

UndervaluedFair: $73.52Overvalued

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

RITM4 strengths · Avg: 10.0/10
P/E RatioValuation
9.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
64.6%10/10

Revenue surging 64.6% year-over-year

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% 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

RITM2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.242/10

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

Bull Case : RITM

The strongest argument for RITM centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 17.0% and operating margin at 13.2%. Revenue growth of 64.6% demonstrates continued momentum.

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 : RITM

The primary concerns for RITM are Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

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

RITM is growing revenue faster at 64.6% — sustainability is the question.

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

Bottom Line

NLY scores higher overall (77/100 vs 69/100), backed by strong 87.4% margins and 48.8% revenue growth. RITM offers better value entry with a 85.5% 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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Rithm Capital Corp.

REAL ESTATE · REIT - MORTGAGE · USA

Rhythm Capital Corp. The company is headquartered in New York, New York.

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