Annaly Capital Management (NYSE:NLY – Get Rating) and Plymouth Industrial REIT (NYSE:PLYM – Get Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 13.4%. Plymouth Industrial REIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.3%. Annaly Capital Management pays out 34.9% of its earnings in the form of a dividend. Plymouth Industrial REIT pays out -106.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Annaly Capital Management and Plymouth Industrial REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Annaly Capital Management||178.91%||16.72%||2.39%|
|Plymouth Industrial REIT||-10.35%||-4.53%||-1.27%|
Valuation & Earnings
This table compares Annaly Capital Management and Plymouth Industrial REIT’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Annaly Capital Management||$1.98 billion||5.37||$2.39 billion||$2.52||2.60|
|Plymouth Industrial REIT||$140.62 million||5.86||-$15.01 million||($0.83)||-24.73|
Annaly Capital Management has higher revenue and earnings than Plymouth Industrial REIT. Plymouth Industrial REIT is trading at a lower price-to-earnings ratio than Annaly Capital Management, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
41.8% of Annaly Capital Management shares are held by institutional investors. Comparatively, 86.2% of Plymouth Industrial REIT shares are held by institutional investors. 0.3% of Annaly Capital Management shares are held by company insiders. Comparatively, 1.3% of Plymouth Industrial REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Annaly Capital Management has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Plymouth Industrial REIT has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
This is a breakdown of current ratings for Annaly Capital Management and Plymouth Industrial REIT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Annaly Capital Management||0||4||2||0||2.33|
|Plymouth Industrial REIT||0||3||3||0||2.50|
Annaly Capital Management presently has a consensus target price of $6.67, indicating a potential upside of 1.78%. Plymouth Industrial REIT has a consensus target price of $28.33, indicating a potential upside of 38.01%. Given Plymouth Industrial REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Plymouth Industrial REIT is more favorable than Annaly Capital Management.
About Annaly Capital Management
Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance and corporate middle market lending. The company invests in agency mortgage-backed securities, mortgage servicing rights, Agency commercial mortgage-backed securities, non-Agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts, and other commercial real estate investments. It 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. The company was founded in 1996 and is based in New York, New York.
About Plymouth Industrial REIT
Plymouth Industrial REIT, Inc. is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment.
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