WallStSmart

ARMOUR Residential REIT Inc (ARR)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 563% more annual revenue ($3.25B vs $490.69M). NLY leads profitability with a 90.7% profit margin vs 87.8%. ARR appears more attractively valued with a PEG of 2.97. ARR earns a higher WallStSmart Score of 80/100 (B+).

ARR

Strong Buy

80

out of 100

Grade: B+

Growth: 7.7Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: -0.94

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.0Value: 5.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARR.

NLYOvervalued (-8.7%)

Margin of Safety

-8.7%

Fair Value

$20.98

Current Price

$23.06

$2.08 premium

UndervaluedFair: $20.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARR6 strengths · Avg: 9.7/10
P/E RatioValuation
3.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
87.8%10/10

Keeps 88 of every $100 in revenue as profit

Operating MarginProfitability
87.0%10/10

Strong operational efficiency at 87.0%

Revenue GrowthGrowth
126.1%10/10

Revenue surging 126.1% year-over-year

EPS GrowthGrowth
23.1%8/10

Earnings expanding 23.1% YoY

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
90.7%10/10

Keeps 91 of every $100 in revenue as profit

Operating MarginProfitability
91.6%10/10

Strong operational efficiency at 91.6%

Revenue GrowthGrowth
479.4%10/10

Revenue surging 479.4% year-over-year

EPS GrowthGrowth
3426.0%10/10

Earnings expanding 3426.0% YoY

Areas to Watch

ARR3 concerns · Avg: 1.7/10
PEG RatioValuation
2.972/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.942/10

Distress zone — elevated risk

Debt/EquityHealth
7.541/10

Elevated debt levels

NLY4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
32.032/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.562/10

Distress zone — elevated risk

Debt/EquityHealth
7.381/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ARR

The strongest argument for ARR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 87.8% and operating margin at 87.0%. Revenue growth of 126.1% demonstrates continued momentum.

Bull 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.

Bear Case : ARR

The primary concerns for ARR are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 7.54 is elevated, increasing financial risk.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Altman Z-Score. Debt-to-equity of 7.38 is elevated, increasing financial risk.

Key Dynamics to Monitor

ARR carries more volatility with a beta of 1.34 — 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.

Monitor REIT - MORTGAGE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ARR scores higher overall (80/100 vs 77/100), backed by strong 87.8% margins and 126.1% revenue growth. 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.

ARMOUR Residential REIT Inc

REAL ESTATE · REIT - MORTGAGE · USA

ARMOR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. The company is headquartered in Vero Beach, Florida.

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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