Annaly Capital Management, Inc. (NLY)vsRedwood Trust Inc (RWT)
NLY
Annaly Capital Management, Inc.
$21.22
-0.24%
REAL ESTATE · Cap: $16.12B
RWT
Redwood Trust Inc
$5.33
+2.11%
REAL ESTATE · Cap: $637.35M
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 1394% more annual revenue ($2.50B vs $167.46M). NLY leads profitability with a 87.4% profit margin vs -54.7%. RWT appears more attractively valued with a PEG of 1.47. NLY earns a higher WallStSmart Score of 77/100 (B+).
NLY
Strong Buy77
out of 100
Grade: B+
RWT
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.9%
Fair Value
$16.54
Current Price
$21.22
$4.68 premium
Margin of Safety
+37.4%
Fair Value
$10.70
Current Price
$5.33
$5.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 87 of every $100 in revenue as profit
Strong operational efficiency at 81.0%
Revenue surging 48.8% year-over-year
Earnings expanding 122.5% YoY
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of -9.6% — below average capital efficiency
Revenue declined 13.4%
Earnings declined 52.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : RWT
The strongest argument for RWT centers on Price/Book. PEG of 1.47 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 7.18 is elevated, increasing financial risk.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 26.42 is elevated, increasing financial risk.
Key Dynamics to Monitor
NLY profiles as a growth stock while RWT is a turnaround play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.42 — 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 39/100), backed by strong 87.4% margins and 48.8% revenue growth. RWT offers better value entry with a 37.4% margin of safety. Both earn "Strong Buy" and "Hold" 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.
Visit Website →Redwood Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.
Visit Website →Compare with Other REIT - MORTGAGE Stocks
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