Annaly Capital Management, Inc. (NLY)vsStarwood Property Trust Inc (STWD)
NLY
Annaly Capital Management, Inc.
$21.24
+2.14%
REAL ESTATE · Cap: $14.94B
STWD
Starwood Property Trust Inc
$17.40
+1.84%
REAL ESTATE · Cap: $6.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 335% more annual revenue ($2.38B vs $547.93M). NLY leads profitability with a 85.1% profit margin vs 75.1%. STWD appears more attractively valued with a PEG of 2.73. NLY earns a higher WallStSmart Score of 75/100 (B).
NLY
Strong Buy75
out of 100
Grade: B
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.3%
Fair Value
$136.66
Current Price
$21.23
$115.42 discount
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.39
$36.42 discount
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
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
ROE of 6.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
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 : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, Revenue Growth. Profitability is solid with margins at 75.1% and operating margin at 11.2%. Revenue growth of 62.6% demonstrates continued momentum.
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 : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
NLY carries more volatility with a beta of 1.30 — 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.
Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NLY scores higher overall (75/100 vs 67/100), backed by strong 85.1% margins and 113.9% revenue growth. STWD offers better value entry with a 66.4% margin of safety. Both earn "Strong Buy" and "Strong 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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