ANNALY CAP MGMT/SH (NYSE:NLY) vs. Empire State Realty Trust (NYSE:ESRT) Financial Comparison

ANNALY CAP MGMT/SH (NYSE:NLY) and Empire State Realty Trust (NYSE:ESRT) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Dividends

ANNALY CAP MGMT/SH pays an annual dividend of $1.20 per share and has a dividend yield of 13.0%. Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.8%. ANNALY CAP MGMT/SH pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 42.9% of its earnings in the form of a dividend.

Profitability

This table compares ANNALY CAP MGMT/SH and Empire State Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANNALY CAP MGMT/SH -77.68% 12.34% 1.48%
Empire State Realty Trust 10.32% 3.81% 1.81%

Institutional & Insider Ownership

57.2% of ANNALY CAP MGMT/SH shares are held by institutional investors. Comparatively, 75.1% of Empire State Realty Trust shares are held by institutional investors. 0.3% of ANNALY CAP MGMT/SH shares are held by company insiders. Comparatively, 11.7% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

ANNALY CAP MGMT/SH has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares ANNALY CAP MGMT/SH and Empire State Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANNALY CAP MGMT/SH $1.43 billion 9.38 $54.40 million $1.20 7.70
Empire State Realty Trust $731.51 million 3.63 $66.54 million $0.98 15.31

Empire State Realty Trust has lower revenue, but higher earnings than ANNALY CAP MGMT/SH. ANNALY CAP MGMT/SH is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for ANNALY CAP MGMT/SH and Empire State Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANNALY CAP MGMT/SH 0 0 5 0 3.00
Empire State Realty Trust 0 3 0 0 2.00

ANNALY CAP MGMT/SH currently has a consensus target price of $10.50, indicating a potential upside of 13.64%. Empire State Realty Trust has a consensus target price of $20.00, indicating a potential upside of 33.33%. Given Empire State Realty Trust’s higher possible upside, analysts clearly believe Empire State Realty Trust is more favorable than ANNALY CAP MGMT/SH.

Summary

Empire State Realty Trust beats ANNALY CAP MGMT/SH on 9 of the 16 factors compared between the two stocks.

ANNALY CAP MGMT/SH Company Profile

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. It also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.

Empire State Realty Trust Company Profile

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of December 31, 2018, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.

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