Annaly Capital Management, Inc. (NLY)vsRedwood Trust Inc (RWT)
NLY
Annaly Capital Management, Inc.
$18.29
-0.27%
REAL ESTATE · Cap: $13.74B
RWT
Redwood Trust Inc
$3.26
+0.62%
REAL ESTATE · Cap: $405.73M
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 1144% more annual revenue ($3.25B vs $261.57M). NLY leads profitability with a 90.7% profit margin vs 2.2%. 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
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-9.2%
Fair Value
$20.89
Current Price
$18.29
$2.60 premium
Margin of Safety
+58.0%
Fair Value
$15.96
Current Price
$3.26
$12.70 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 91 of every $100 in revenue as profit
Strong operational efficiency at 91.6%
Revenue surging 479.4% year-over-year
Earnings expanding 3426.0% YoY
Reasonable price relative to book value
Areas to Watch
ROE of 7.2% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 0.6% — below average capital efficiency
2.2% margin — thin
Operating margin of 0.1%
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 90.7% and operating margin at 91.6%. Revenue growth of 479.4% 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 Return on Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 8.04 is elevated, increasing financial risk.
Bear Case : RWT
The primary concerns for RWT are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 29.41 is elevated, increasing financial risk. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
NLY profiles as a growth stock while RWT is a value play — different risk/reward profiles.
RWT carries more volatility with a beta of 1.51 — expect wider price swings.
NLY is growing revenue faster at 479.4% — sustainability is the question.
NLY generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
NLY scores higher overall (77/100 vs 46/100), backed by strong 90.7% margins and 479.4% revenue growth. RWT offers better value entry with a 58.0% 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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