WallStSmart

Annaly Capital Management, Inc. (NLY)vsOrchid Island Capital Inc. (ORC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 1105% more annual revenue ($3.25B vs $270.14M). NLY leads profitability with a 90.7% profit margin vs 90.6%. ORC trades at a lower P/E of 3.7x. NLY earns a higher WallStSmart Score of 77/100 (B+).

NLY

Strong Buy

77

out of 100

Grade: B+

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

ORC

Strong Buy

75

out of 100

Grade: B

Growth: 8.3Profit: 7.5Value: 6.7Quality: 3.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYOvervalued (-8.7%)

Margin of Safety

-8.7%

Fair Value

$20.99

Current Price

$23.04

$2.05 premium

UndervaluedFair: $20.99Overvalued

Intrinsic value data unavailable for ORC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

ORC6 strengths · Avg: 10.0/10
P/E RatioValuation
3.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
90.6%10/10

Keeps 91 of every $100 in revenue as profit

Operating MarginProfitability
92.9%10/10

Strong operational efficiency at 92.9%

Revenue GrowthGrowth
1003.0%10/10

Revenue surging 1003.0% year-over-year

EPS GrowthGrowth
794.0%10/10

Earnings expanding 794.0% YoY

Areas to Watch

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

ORC2 concerns · Avg: 2.0/10
Market CapQuality
$1.30B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
8.041/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : ORC

The strongest argument for ORC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 90.6% and operating margin at 92.9%. Revenue growth of 1003.0% demonstrates continued momentum.

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.

Bear Case : ORC

The primary concerns for ORC are Market Cap, Debt/Equity. Debt-to-equity of 8.04 is elevated, increasing financial risk.

Key Dynamics to Monitor

ORC carries more volatility with a beta of 1.55 — expect wider price swings.

ORC is growing revenue faster at 1003.0% — sustainability is the question.

ORC generates stronger free cash flow (82M), providing more financial flexibility.

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

Bottom Line

NLY scores higher overall (77/100 vs 75/100), backed by strong 90.7% margins and 479.4% 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.

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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Orchid Island Capital Inc.

REAL ESTATE · REIT - MORTGAGE · USA

Orchid Island Capital, Inc., a specialty finance company, invests in Residential Mortgage-Backed Securities (RMBS) in the United States. The company is headquartered in Vero Beach, Florida.

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