Annaly Capital Management, Inc. (NLY)vsRedwood Trust Inc (RWT)
NLY
Annaly Capital Management, Inc.
$21.41
+1.57%
REAL ESTATE · Cap: $15.14B
RWT
Redwood Trust Inc
$5.46
+3.21%
REAL ESTATE · Cap: $661.19M
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 1243% more annual revenue ($2.38B vs $177.37M). NLY leads profitability with a 85.1% profit margin vs -39.5%. RWT appears more attractively valued with a PEG of 1.47. NLY earns a higher WallStSmart Score of 75/100 (B).
NLY
Strong Buy75
out of 100
Grade: B
RWT
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.2%
Fair Value
$135.72
Current Price
$21.41
$114.31 discount
Intrinsic value data unavailable for RWT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 85 of every $100 in revenue as profit
Strong operational efficiency at 93.7%
Revenue surging 113.9% year-over-year
Earnings expanding 81.1% YoY
Reasonable price relative to book value
Strong operational efficiency at 32.1%
Revenue surging 93.1% year-over-year
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Smaller company, higher risk/reward
ROE of -6.4% — below average capital efficiency
Earnings declined 52.6%
Negative free cash flow — burning cash
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 85.1% and operating margin at 93.7%. Revenue growth of 113.9% demonstrates continued momentum.
Bull Case : RWT
The strongest argument for RWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 93.1% demonstrates continued momentum. 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, Altman Z-Score. Debt-to-equity of 6.95 is elevated, increasing financial risk.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 22.68 is elevated, increasing financial risk.
Key Dynamics to Monitor
NLY profiles as a growth stock while RWT is a hypergrowth play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.59 — 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.
Bottom Line
NLY scores higher overall (75/100 vs 59/100), backed by strong 85.1% margins and 113.9% 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.
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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