WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 3006% more annual revenue ($2.50B vs $80.53M). NLY leads profitability with a 87.4% profit margin vs 76.7%. IVR appears more attractively valued with a PEG of 7.20. NLY earns a higher WallStSmart Score of 77/100 (B+).

IVR

Buy

64

out of 100

Grade: C+

Growth: 7.7Profit: 7.0Value: 6.7Quality: 2.5
Piotroski: 3/9Altman Z: -1.48

NLY

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.0Value: 4.7Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IVRUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$12.16

Current Price

$7.41

$4.75 discount

UndervaluedFair: $12.16Overvalued
NLYSignificantly Overvalued (-37.5%)

Margin of Safety

-37.5%

Fair Value

$16.59

Current Price

$23.05

$6.46 premium

UndervaluedFair: $16.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IVR5 strengths · Avg: 10.0/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
76.7%10/10

Keeps 77 of every $100 in revenue as profit

Operating MarginProfitability
132.6%10/10

Strong operational efficiency at 132.6%

Revenue GrowthGrowth
558.0%10/10

Revenue surging 558.0% year-over-year

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
87.4%10/10

Keeps 87 of every $100 in revenue as profit

Operating MarginProfitability
81.0%10/10

Strong operational efficiency at 81.0%

Revenue GrowthGrowth
48.8%10/10

Revenue surging 48.8% year-over-year

EPS GrowthGrowth
122.5%10/10

Earnings expanding 122.5% YoY

Areas to Watch

IVR4 concerns · Avg: 2.8/10
Market CapQuality
$761.86M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
7.202/10

Expensive relative to growth rate

NLY4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
32.032/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.90B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.562/10

Distress zone — elevated risk

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 76.7% and operating margin at 132.6%. 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 87.4% and operating margin at 81.0%. Revenue growth of 48.8% demonstrates continued momentum.

Bear Case : IVR

The primary concerns for IVR are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 6.09 is elevated, increasing financial risk.

Bear Case : NLY

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

Key Dynamics to Monitor

IVR carries more volatility with a beta of 1.54 — expect wider price swings.

IVR is growing revenue faster at 558.0% — sustainability is the question.

IVR generates stronger free cash flow (27M), providing more financial flexibility.

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

Bottom Line

NLY scores higher overall (77/100 vs 64/100), backed by strong 87.4% margins and 48.8% revenue growth. IVR offers better value entry with a 26.6% margin of safety. Both earn "Strong Buy" and "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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