WallStSmart

Annaly Capital Management, Inc. (NLY)vsTwo Harbors Investments Corp (TWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 407% more annual revenue ($2.50B vs $493.78M). NLY leads profitability with a 87.4% profit margin vs -69.5%. TWO appears more attractively valued with a PEG of 2.76. 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

TWO

Buy

51

out of 100

Grade: C-

Growth: 7.3Profit: 4.0Value: 4.0Quality: 4.3
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NLYOvervalued (-13.9%)

Margin of Safety

-13.9%

Fair Value

$20.02

Current Price

$22.61

$2.59 premium

UndervaluedFair: $20.02Overvalued

Intrinsic value data unavailable for TWO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

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

TWO3 strengths · Avg: 9.3/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
1569.0%10/10

Revenue surging 1569.0% year-over-year

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

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

TWO4 concerns · Avg: 2.5/10
Market CapQuality
$1.30B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.762/10

Expensive relative to growth rate

Return on EquityProfitability
-17.7%2/10

ROE of -17.7% — below average capital efficiency

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

Bull Case : TWO

The strongest argument for TWO centers on Price/Book, Revenue Growth, Operating Margin. Revenue growth of 1569.0% demonstrates continued momentum.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 6.95 is elevated, increasing financial risk.

Bear Case : TWO

The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

NLY profiles as a growth stock while TWO is a hypergrowth play — different risk/reward profiles.

NLY carries more volatility with a beta of 1.27 — expect wider price swings.

TWO is growing revenue faster at 1569.0% — sustainability is the question.

TWO generates stronger free cash flow (56M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (77/100 vs 51/100), backed by strong 87.4% margins and 48.8% revenue growth. 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.

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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Two Harbors Investments Corp

REAL ESTATE · REIT - MORTGAGE · USA

Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.

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