ANNALY CAP MGMT/SH (NYSE:NLY) and Apollo Commercial Real Est. Finance (NYSE:ARI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Volatility and Risk
ANNALY CAP MGMT/SH has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Apollo Commercial Real Est. Finance has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Earnings & Valuation
This table compares ANNALY CAP MGMT/SH and Apollo Commercial Real Est. Finance's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ANNALY CAP MGMT/SH | $3.79 billion | 2.51 | $-2,162,860,000.00 | $1.00 | 6.65 |
| Apollo Commercial Real Est. Finance | $334.48 million | 4.16 | $230.17 million | $1.77 | 5.11 |
Apollo Commercial Real Est. Finance has lower revenue, but higher earnings than ANNALY CAP MGMT/SH. Apollo Commercial Real Est. Finance is trading at a lower price-to-earnings ratio than ANNALY CAP MGMT/SH, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
52.3% of ANNALY CAP MGMT/SH shares are held by institutional investors. Comparatively, 67.0% of Apollo Commercial Real Est. Finance shares are held by institutional investors. 0.4% of ANNALY CAP MGMT/SH shares are held by company insiders. Comparatively, 0.5% of Apollo Commercial Real Est. Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares ANNALY CAP MGMT/SH and Apollo Commercial Real Est. Finance's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ANNALY CAP MGMT/SH | -142.51% | 11.46% | 1.21% |
| Apollo Commercial Real Est. Finance | 10.60% | 10.10% | 4.01% |
Dividends
ANNALY CAP MGMT/SH pays an annual dividend of $1.20 per share and has a dividend yield of 18.0%. Apollo Commercial Real Est. Finance pays an annual dividend of $1.40 per share and has a dividend yield of 15.5%. ANNALY CAP MGMT/SH pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Commercial Real Est. Finance pays out 79.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for ANNALY CAP MGMT/SH and Apollo Commercial Real Est. Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ANNALY CAP MGMT/SH | 0 | 2 | 6 | 0 | 2.75 |
| Apollo Commercial Real Est. Finance | 0 | 3 | 0 | 0 | 2.00 |
ANNALY CAP MGMT/SH currently has a consensus target price of $7.7188, suggesting a potential upside of 16.07%. Apollo Commercial Real Est. Finance has a consensus target price of $16.10, suggesting a potential upside of 77.90%. Given Apollo Commercial Real Est. Finance's higher possible upside, analysts plainly believe Apollo Commercial Real Est. Finance is more favorable than ANNALY CAP MGMT/SH.
Summary
Apollo Commercial Real Est. Finance beats ANNALY CAP MGMT/SH on 11 of the 16 factors compared between the two stocks.
