WallStSmart

Invesco Mortgage Capital Inc (IVR)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 2234% more annual revenue ($3.25B vs $139.44M). NLY leads profitability with a 90.7% profit margin vs 86.1%. IVR appears more attractively valued with a PEG of 7.20. NLY earns a higher WallStSmart Score of 77/100 (B+).

IVR

Strong Buy

69

out of 100

Grade: B-

Growth: 7.7Profit: 7.5Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: -1.48

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

IVRUndervalued (+57.3%)

Margin of Safety

+57.3%

Fair Value

$20.87

Current Price

$6.80

$14.07 discount

UndervaluedFair: $20.87Overvalued
NLYOvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$20.97

Current Price

$21.90

$0.93 premium

UndervaluedFair: $20.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IVR5 strengths · Avg: 10.0/10
P/E RatioValuation
4.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Profit MarginProfitability
86.1%10/10

Keeps 86 of every $100 in revenue as profit

Operating MarginProfitability
86.5%10/10

Strong operational efficiency at 86.5%

Revenue GrowthGrowth
558.0%10/10

Revenue surging 558.0% year-over-year

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

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

IVR4 concerns · Avg: 2.5/10
Market CapQuality
$726.94M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
7.202/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-1.482/10

Distress zone — elevated risk

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 : IVR

The strongest argument for IVR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 86.1% and operating margin at 86.5%. Revenue growth of 558.0% 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 : IVR

The primary concerns for IVR are Market Cap, Piotroski F-Score, PEG Ratio. Debt-to-equity of 6.27 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

IVR carries more volatility with a beta of 1.57 — expect wider price swings.

IVR is growing revenue faster at 558.0% — 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

NLY scores higher overall (77/100 vs 69/100), backed by strong 90.7% margins and 479.4% revenue growth. IVR offers better value entry with a 57.3% 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.

Invesco Mortgage Capital Inc

REAL ESTATE · REIT - MORTGAGE · USA

Invesco Mortgage Capital Inc. is a real estate investment trust (REIT) that primarily focuses on investing, financing, and managing mortgage-backed securities and other mortgage-related assets. The company is headquartered in Atlanta, Georgia.

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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