WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 531% more annual revenue ($2.38B vs $377.44M). ARR leads profitability with a 85.5% profit margin vs 85.1%. ARR appears more attractively valued with a PEG of 2.97. ARR earns a higher WallStSmart Score of 78/100 (B+).

ARR

Strong Buy

78

out of 100

Grade: B+

Growth: 7.7Profit: 8.0Value: 7.3Quality: 5.0

NLY

Strong Buy

75

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARRUndervalued (+87.8%)

Margin of Safety

+87.8%

Fair Value

$144.41

Current Price

$16.39

$128.02 discount

UndervaluedFair: $144.41Overvalued
NLYUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$135.72

Current Price

$21.41

$114.31 discount

UndervaluedFair: $135.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARR6 strengths · Avg: 9.7/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.5%10/10

Keeps 86 of every $100 in revenue as profit

Operating MarginProfitability
93.8%10/10

Strong operational efficiency at 93.8%

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
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.1%10/10

Keeps 85 of every $100 in revenue as profit

Operating MarginProfitability
93.7%10/10

Strong operational efficiency at 93.7%

Revenue GrowthGrowth
113.9%10/10

Revenue surging 113.9% year-over-year

EPS GrowthGrowth
81.1%10/10

Earnings expanding 81.1% YoY

Areas to Watch

ARR1 concerns · Avg: 2.0/10
PEG RatioValuation
2.972/10

Expensive relative to growth rate

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
6.951/10

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 85.5% and operating margin at 93.8%. 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 85.1% and operating margin at 93.7%. Revenue growth of 113.9% demonstrates continued momentum.

Bear Case : ARR

The primary concerns for ARR are PEG Ratio.

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.

Key Dynamics to Monitor

ARR carries more volatility with a beta of 1.42 — expect wider price swings.

ARR is growing revenue faster at 126.1% — 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

ARR scores higher overall (78/100 vs 75/100), backed by strong 85.5% margins and 126.1% revenue growth. NLY offers better value entry with a 83.2% 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.

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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