Annaly Capital Management Inc (NLY) vs STARWOOD PROPERTY TRUST, INC. (STWD)

Annaly Capital Management Inc and STARWOOD PROPERTY TRUST, INC. are both Reit Mortgage companies. Annaly Capital Management Inc is the larger, with a market value of $14.9B against $4.8B — 3.1× the size. STARWOOD PROPERTY TRUST, INC. has negative trailing earnings, so its P/E is not meaningful; Annaly Capital Management Inc trades at 13.1×. STARWOOD PROPERTY TRUST, INC. grew revenue faster over the last twelve months: 14.4% against 5.50%. Annaly Capital Management Inc has the higher net margin (14.2% vs −11.8%) and the higher return on invested capital (5.25% vs −3.01%). Both pay a dividend; STARWOOD PROPERTY TRUST, INC. yields more (16.0% vs 15.5%). Across the 20 metrics below, Annaly Capital Management Inc leads on 13 and STARWOOD PROPERTY TRUST, INC. on 7.

Valuation

Metric NLY STWD Reit Mortgage median
P/E 13.09 n/m 14.23
P/S 2.13 2.12 1.70
P/B 1.02 0.71 0.50
Price to free cash flow 4.72 8.69 4.26
EV/EBITDA n/m 179.63 27.48
EV/Sales 2.16 13.25 15.74
Earnings yield 7.64% (5.65%) (0.27%)
Free cash flow yield 21.17% 11.51% 14.37%

Profitability

Metric NLY STWD Reit Mortgage median
Gross margin 20.33% 29.35% 100.00%
Operating margin 0.00% (12.70%) 31.94%
Net margin 14.18% (11.81%) (3.66%)
Free cash flow margin 44.27% 47.66% 27.05%
Return on equity 6.98% (3.65%) (0.88%)
Return on assets 0.70% (0.41%) (0.15%)
Return on invested capital 5.25% (3.01%) 0.79%

Growth

Metric NLY STWD Reit Mortgage median
Revenue growth (TTM) 5.50% 14.35% 1.39%
EPS growth (last fiscal year) 80.25% 4.55% 45.25%
Revenue growth, 5-year CAGR 103.38% 10.17% 14.60%
Net income growth, 5-year CAGR 0.00% 3.94% 0.00%

Health

Metric NLY STWD Reit Mortgage median
Debt to equity 0.00 0.00 2.91
Current ratio 0.12 0.00 0.82
Net debt to EBITDA 0.00 160.93 18.31

Dividend

Metric NLY STWD Reit Mortgage median
Dividend yield 15.49% 15.96% 17.54%
Payout ratio 2.03 3.25 1.87

Size

Metric NLY STWD Reit Mortgage median
Market cap 14.85b 4.77b 390.66m

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