Annaly Capital Management, Inc. (NLY)vsTwo Harbors Investments Corp (TWO)
NLY
Annaly Capital Management, Inc.
$23.04
+1.68%
REAL ESTATE · Cap: $17.12B
TWO
Two Harbors Investments Corp
$12.12
+0.75%
REAL ESTATE · Cap: $1.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 408% more annual revenue ($3.25B vs $640.21M). NLY leads profitability with a 90.7% profit margin vs -3.4%. TWO appears more attractively valued with a PEG of 2.76. NLY earns a higher WallStSmart Score of 77/100 (B+).
NLY
Strong Buy77
out of 100
Grade: B+
TWO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.7%
Fair Value
$20.99
Current Price
$23.04
$2.05 premium
Intrinsic value data unavailable for TWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 91 of every $100 in revenue as profit
Strong operational efficiency at 91.6%
Revenue surging 479.4% year-over-year
Earnings expanding 3426.0% YoY
Reasonable price relative to book value
Strong operational efficiency at 48.1%
Revenue surging 620.0% year-over-year
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
ROE of -19.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : TWO
The strongest argument for TWO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 620.0% 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 : TWO
The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio. Debt-to-equity of 4.79 is elevated, increasing financial risk.
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 1.24 — expect wider price swings.
TWO is growing revenue faster at 620.0% — sustainability is the question.
TWO generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
NLY scores higher overall (77/100 vs 55/100), backed by strong 90.7% margins and 479.4% 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.
Visit Website →Two Harbors Investments Corp
REAL ESTATE · REIT - MORTGAGE · USA
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.
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