Angel Oak Mortgage REIT (NYSE:AOMR – Get Free Report) and Annaly Capital Management (NYSE:NLY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Profitability
This table compares Angel Oak Mortgage REIT and Annaly Capital Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angel Oak Mortgage REIT | 30.65% | 5.15% | 0.50% |
| Annaly Capital Management | 34.02% | 15.80% | 1.68% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Angel Oak Mortgage REIT and Annaly Capital Management, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angel Oak Mortgage REIT | 0 | 3 | 2 | 0 | 2.40 |
| Annaly Capital Management | 0 | 4 | 7 | 1 | 2.75 |
Risk & Volatility
Angel Oak Mortgage REIT has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Insider & Institutional Ownership
80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 51.6% of Annaly Capital Management shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by insiders. Comparatively, 0.2% of Annaly Capital Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 15.4%. Annaly Capital Management pays an annual dividend of $2.80 per share and has a dividend yield of 13.3%. Angel Oak Mortgage REIT pays out 70.7% of its earnings in the form of a dividend. Annaly Capital Management pays out 100.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Capital Management has raised its dividend for 2 consecutive years. Angel Oak Mortgage REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Angel Oak Mortgage REIT and Annaly Capital Management”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Angel Oak Mortgage REIT | $143.65 million | 1.44 | $44.02 million | $1.81 | 4.58 |
| Annaly Capital Management | $2.24 billion | 6.73 | $2.03 billion | $2.78 | 7.57 |
Annaly Capital Management has higher revenue and earnings than Angel Oak Mortgage REIT. Angel Oak Mortgage 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.
Summary
Annaly Capital Management beats Angel Oak Mortgage REIT on 12 of the 18 factors compared between the two stocks.
About Angel Oak Mortgage REIT
Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.
About Annaly Capital Management
Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. 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 incorporated in 1996 and is based in New York, New York.
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