ARMOUR Residential REIT, Inc. (ARR) vs Annaly Capital Management Inc (NLY)

ARMOUR Residential REIT, Inc. and Annaly Capital Management Inc are both Reit Mortgage companies. Annaly Capital Management Inc is the larger, with a market value of $14.9B against $1.9B — 7.9× the size. ARMOUR Residential REIT, Inc. has negative trailing earnings, so its P/E is not meaningful; Annaly Capital Management Inc trades at 13.2×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 42.9% against 5.50%. Annaly Capital Management Inc has the higher net margin (14.2% vs −6.34%) and the higher return on invested capital (5.25% vs 2.78%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (22.9% vs 15.4%). Across the 20 metrics below, ARMOUR Residential REIT, Inc. leads on 10 and Annaly Capital Management Inc on 10.

Valuation

Metric ARR NLY Reit Mortgage median
P/E n/m 13.20 14.55
P/S 1.77 2.15 1.72
P/B 0.77 1.02 0.52
Price to free cash flow 3.98 4.76 4.35
EV/EBITDA 21.84 n/m 28.27
EV/Sales 20.57 2.18 15.73
Earnings yield (0.24%) 7.58% 0.23%
Free cash flow yield 25.13% 21.01% 13.86%

Profitability

Metric ARR NLY Reit Mortgage median
Gross margin 100.00% 20.33% 100.00%
Operating margin 93.69% 0.00% 31.94%
Net margin (6.34%) 14.18% (1.81%)
Free cash flow margin 44.56% 44.27% 27.05%
Return on equity (2.90%) 6.98% (0.49%)
Return on assets (0.31%) 0.70% (0.06%)
Return on invested capital 2.78% 5.25% 0.79%

Growth

Metric ARR NLY Reit Mortgage median
Revenue growth (TTM) 42.92% 5.50% 1.39%
EPS growth (last fiscal year) 747.06% 80.25% 45.25%
Revenue growth, 5-year CAGR 36.42% 103.38% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARR NLY Reit Mortgage median
Debt to equity 8.24 0.00 2.91
Current ratio 0.03 0.12 0.82
Net debt to EBITDA 23.82 0.00 18.31

Dividend

Metric ARR NLY Reit Mortgage median
Dividend yield 22.93% 15.37% 17.37%
Payout ratio 0.84 2.03 1.87

Size

Metric ARR NLY Reit Mortgage median
Market cap 1.87b 14.85b 409.49m

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