Dynex Capital, Inc. (DX) vs Annaly Capital Management Inc (NLY)

Dynex Capital, Inc. and Annaly Capital Management Inc are both Reit Mortgage companies. Annaly Capital Management Inc is the larger, with a market value of $15.6B against $2.8B — 5.5× the size. Dynex Capital, Inc. trades at the lower P/E: 4.3× against 5.2×. Dynex Capital, Inc. grew revenue faster over the last twelve months: 134.2% against 50.5%. Dynex Capital, Inc. has the higher net margin (48.0% vs 33.3%) and the lower return on invested capital (2.08% vs 13.2%). Both pay a dividend; Annaly Capital Management Inc yields more (13.7% vs 13.0%). Across the 21 metrics below, Dynex Capital, Inc. leads on 12 and Annaly Capital Management Inc on 9.

Valuation

Metric DX NLY Reit Mortgage median
P/E 4.28 5.15 7.80
P/S 2.84 1.82 1.90
P/B 0.82 1.00 0.61
Price to free cash flow 10.65 n/m 5.90
EV/EBITDA 28.40 n/m 28.40
EV/Sales 27.06 1.76 16.02
Earnings yield 23.37% 19.41% 7.68%
Free cash flow yield 9.39% (0.46%) 11.60%

Profitability

Metric DX NLY Reit Mortgage median
Gross margin 100.00% 38.06% 100.00%
Operating margin 92.55% 0.00% 35.40%
Net margin 47.95% 33.33% 11.85%
Free cash flow margin 26.68% (1.53%) 26.68%
Return on equity 18.61% 20.55% 4.81%
Return on assets 2.25% 2.18% 0.62%
Return on invested capital 2.08% 13.22% 1.22%

Growth

Metric DX NLY Reit Mortgage median
Revenue growth (TTM) 134.15% 50.46% 4.70%
EPS growth (last fiscal year) 52.35% 80.25% —
Revenue growth, 5-year CAGR 40.78% 103.38% 14.60%
Net income growth, 5-year CAGR 14.06% 0.00% 0.00%

Health

Metric DX NLY Reit Mortgage median
Debt to equity 7.14 0.00 3.30
Current ratio 1.16 0.13 1.00
Net debt to EBITDA 25.53 0.00 18.31

Dividend

Metric DX NLY Reit Mortgage median
Dividend yield 13.01% 13.69% 13.05%
Payout ratio 8.21 0.47 1.24

Size

Metric DX NLY Reit Mortgage median
Market cap 2.83b 15.56b 517.48m

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