WallStSmart

Dynex Capital Inc (DX)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 548% more annual revenue ($3.25B vs $502.28M). NLY leads profitability with a 90.7% profit margin vs 86.8%. DX appears more attractively valued with a PEG of 0.71. DX earns a higher WallStSmart Score of 84/100 (A-).

DX

Exceptional Buy

84

out of 100

Grade: A-

Growth: 8.3Profit: 7.5Value: 9.3Quality: 2.5
Piotroski: 2/9Altman Z: -0.72

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

DXUndervalued (+70.2%)

Margin of Safety

+70.2%

Fair Value

$46.91

Current Price

$13.02

$33.89 discount

UndervaluedFair: $46.91Overvalued
NLYOvervalued (-8.7%)

Margin of Safety

-8.7%

Fair Value

$20.98

Current Price

$23.39

$2.41 premium

UndervaluedFair: $20.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DX6 strengths · Avg: 10.0/10
P/E RatioValuation
4.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
86.8%10/10

Keeps 87 of every $100 in revenue as profit

Operating MarginProfitability
91.8%10/10

Strong operational efficiency at 91.8%

Revenue GrowthGrowth
234.8%10/10

Revenue surging 234.8% year-over-year

EPS GrowthGrowth
92.3%10/10

Earnings expanding 92.3% YoY

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

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

DX3 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
-0.722/10

Distress zone — elevated risk

Debt/EquityHealth
7.131/10

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 : DX

The strongest argument for DX centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 86.8% and operating margin at 91.8%. Revenue growth of 234.8% 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 : DX

The primary concerns for DX are Piotroski F-Score, Altman Z-Score, Debt/Equity. Debt-to-equity of 7.13 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

NLY carries more volatility with a beta of 1.24 — 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

DX scores higher overall (84/100 vs 77/100), backed by strong 86.8% margins and 234.8% revenue growth. Both earn "Exceptional 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.

Dynex Capital Inc

REAL ESTATE · REIT - MORTGAGE · USA

Dynex Capital, Inc., a mortgage real estate investment trust, invests in Mortgage-Backed Securities (MBS) on a leveraged basis in the United States. The company is headquartered in Glen Allen, Virginia.

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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