WallStSmart

Annaly Capital Management, Inc. (NLY)vsSeven Hills Realty Trust (SEVN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 8474% more annual revenue ($2.50B vs $29.17M). NLY leads profitability with a 87.4% profit margin vs 52.4%. 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: 7.5Value: 4.7Quality: 2.5
Piotroski: 3/9Altman Z: -0.56

SEVN

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 7.0Value: 5.7Quality: 2.5
Piotroski: 1/9Altman Z: 0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYSignificantly Overvalued (-37.7%)

Margin of Safety

-37.7%

Fair Value

$16.56

Current Price

$22.56

$6.00 premium

UndervaluedFair: $16.56Overvalued
SEVNSignificantly Overvalued (-61.8%)

Margin of Safety

-61.8%

Fair Value

$5.37

Current Price

$8.57

$3.20 premium

UndervaluedFair: $5.37Overvalued

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

SEVN4 strengths · Avg: 10.0/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
52.4%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
56.8%10/10

Strong operational efficiency at 56.8%

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

SEVN4 concerns · Avg: 3.0/10
Market CapQuality
$194.10M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Debt/EquityHealth
1.423/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 : SEVN

The strongest argument for SEVN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 52.4% and operating margin at 56.8%.

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 : SEVN

The primary concerns for SEVN are Market Cap, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

NLY profiles as a growth stock while SEVN is a declining play — different risk/reward profiles.

NLY carries more volatility with a beta of 1.25 — expect wider price swings.

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

SEVN generates stronger free cash flow (5M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (77/100 vs 49/100), backed by strong 87.4% margins and 48.8% revenue growth. 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.

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Seven Hills Realty Trust

REAL ESTATE · REIT - MORTGAGE · USA

Seven Hills Realty Trust is a specialized real estate investment trust (REIT) that focuses on curating a diversified portfolio of high-quality commercial properties, primarily within the healthcare sector. The Trust strategically invests in skilled nursing facilities and senior living communities, positioning itself to benefit from the growing demand for healthcare services driven by an aging demographic. Committed to operational excellence and prudent investment strategies, Seven Hills Realty Trust seeks to deliver sustainable, risk-adjusted returns while building strong partnerships with its tenants in an evolving market environment.

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