Ellington Financial Inc. (EFC) vs Annaly Capital Management Inc (NLY)

Ellington Financial Inc. and Annaly Capital Management Inc are both Reit Mortgage companies. Annaly Capital Management Inc is the larger, with a market value of $13.9B against $1.5B — 9.1× the size. Annaly Capital Management Inc trades at the lower P/E: 4.6× against 7.1×. Annaly Capital Management Inc grew revenue faster over the last twelve months: 50.5% against 31.0%. Annaly Capital Management Inc has the higher net margin (33.3% vs 33.3%) and the higher return on invested capital (13.2% vs 2.52%). Both pay a dividend; Annaly Capital Management Inc yields more (15.9% vs 14.5%). Across the 21 metrics below, Annaly Capital Management Inc leads on 16 and Ellington Financial Inc. on 5.

Valuation

Metric EFC NLY Reit Mortgage median
P/E 7.10 4.56 7.10
P/S 2.51 1.61 1.77
P/B 0.82 0.89 0.55
Price to free cash flow n/m n/m 5.36
EV/EBITDA 24.12 n/m 28.29
EV/Sales 32.02 1.55 15.90
Earnings yield 14.08% 21.94% 8.10%
Free cash flow yield (37.34%) (0.51%) 13.00%

Profitability

Metric EFC NLY Reit Mortgage median
Gross margin 95.29% 38.06% 100.00%
Operating margin 132.74% 0.00% 35.40%
Net margin 33.26% 33.33% 11.85%
Free cash flow margin (93.67%) (1.53%) 26.68%
Return on equity 12.37% 20.55% 4.81%
Return on assets 1.02% 2.18% 0.62%
Return on invested capital 2.52% 13.22% 1.22%

Growth

Metric EFC NLY Reit Mortgage median
Revenue growth (TTM) 30.99% 50.46% 4.70%
EPS growth (last fiscal year) (12.50%) 80.25% 45.25%
Revenue growth, 5-year CAGR 23.30% 103.38% 14.60%
Net income growth, 5-year CAGR 47.10% 0.00% 0.00%

Health

Metric EFC NLY Reit Mortgage median
Debt to equity 9.37 0.00 3.30
Current ratio 52.06 0.13 1.00
Net debt to EBITDA 25.85 0.00 18.31

Dividend

Metric EFC NLY Reit Mortgage median
Dividend yield 14.51% 15.91% 17.34%
Payout ratio 1.03 0.73 1.28

Size

Metric EFC NLY Reit Mortgage median
Market cap 1.53b 13.89b 479.53m

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