WallStSmart

Annaly Capital Management, Inc. (NLY)vsRithm Capital Corp. (RITM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rithm Capital Corp. generates 33% more annual revenue ($4.32B vs $3.25B). NLY leads profitability with a 90.7% profit margin vs 10.8%. NLY trades at a lower P/E of 5.2x. 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

RITM

Hold

49

out of 100

Grade: D+

Growth: 6.0Profit: 5.5Value: 7.7Quality: 3.0
Piotroski: 2/9Altman Z: 0.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYOvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$20.96

Current Price

$21.31

$0.35 premium

UndervaluedFair: $20.96Overvalued
RITMUndervalued (+83.3%)

Margin of Safety

+83.3%

Fair Value

$64.19

Current Price

$9.55

$54.64 discount

UndervaluedFair: $64.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
5.2x10/10

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

RITM2 strengths · Avg: 9.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Areas to Watch

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

RITM4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Altman Z-ScoreHealth
0.402/10

Distress zone — elevated risk

Debt/EquityHealth
4.721/10

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 : RITM

The strongest argument for RITM centers on Price/Book, P/E Ratio.

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.

Bear Case : RITM

The primary concerns for RITM are Piotroski F-Score, EPS Growth, Altman Z-Score. Debt-to-equity of 4.72 is elevated, increasing financial risk.

Key Dynamics to Monitor

NLY profiles as a growth stock while RITM is a value play — different risk/reward profiles.

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.

Bottom Line

NLY scores higher overall (77/100 vs 49/100), backed by strong 90.7% margins and 479.4% revenue growth. RITM offers better value entry with a 83.3% margin of safety. Both earn "Strong Buy" and "Hold" 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.

Visit Website →

Rithm Capital Corp.

REAL ESTATE · REIT - MORTGAGE · USA

Rhythm Capital Corp. The company is headquartered in New York, New York.

Want to dig deeper into these stocks?