Annaly Capital Management, Inc. (NLY)vsStarwood Property Trust Inc (STWD)
NLY
Annaly Capital Management, Inc.
$22.16
-0.24%
REAL ESTATE · Cap: $16.12B
STWD
Starwood Property Trust Inc
$17.05
-0.23%
REAL ESTATE · Cap: $6.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 331% more annual revenue ($2.50B vs $580.84M). NLY leads profitability with a 87.4% profit margin vs 60.5%. STWD appears more attractively valued with a PEG of 1.74. NLY earns a higher WallStSmart Score of 77/100 (B+).
NLY
Strong Buy77
out of 100
Grade: B+
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.8%
Fair Value
$16.55
Current Price
$22.16
$5.61 premium
Margin of Safety
+84.7%
Fair Value
$117.88
Current Price
$17.05
$100.83 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
Keeps 61 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.8% year-over-year
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 60.4%
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 : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% demonstrates continued momentum.
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 : STWD
The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
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.
STWD generates stronger free cash flow (-56M), providing more financial flexibility.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NLY scores higher overall (77/100 vs 59/100), backed by strong 87.4% margins and 48.8% revenue growth. STWD offers better value entry with a 84.7% margin of safety. 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 →Starwood Property Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Starwood Property Trust, Inc. is a real estate investment trust (REIT) in the United States and Europe. The company is headquartered in Greenwich, Connecticut.
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