Blackstone Mortgage Trust (NYSE:BXMT) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Analyst Ratings
This is a summary of current ratings for Blackstone Mortgage Trust and Annaly Capital Management, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Blackstone Mortgage Trust | 0 | 4 | 2 | 0 | 2.33 |
| Annaly Capital Management | 0 | 2 | 6 | 0 | 2.75 |
Blackstone Mortgage Trust presently has a consensus price target of $28.5833, suggesting a potential upside of 31.84%. Annaly Capital Management has a consensus price target of $7.4688, suggesting a potential upside of 4.60%. Given Blackstone Mortgage Trust's higher possible upside, research analysts clearly believe Blackstone Mortgage Trust is more favorable than Annaly Capital Management.
Profitability
This table compares Blackstone Mortgage Trust and Annaly Capital Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Blackstone Mortgage Trust | 16.38% | 8.36% | 1.91% |
| Annaly Capital Management | -74.09% | 12.15% | 1.34% |
Dividends
Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 11.4%. Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 12.3%. Blackstone Mortgage Trust pays out 100.8% 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 pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Mortgage Trust has raised its dividend for 1 consecutive years. Annaly Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
60.5% of Blackstone Mortgage Trust shares are owned by institutional investors. Comparatively, 47.6% of Annaly Capital Management shares are owned by institutional investors. 1.0% of Blackstone Mortgage Trust shares are owned by company insiders. Comparatively, 0.4% of Annaly Capital Management shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Blackstone Mortgage Trust and Annaly Capital Management's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Blackstone Mortgage Trust | $424.18 million | 7.47 | $305.57 million | $2.46 | 8.81 |
| Annaly Capital Management | $3.79 billion | 2.64 | $-2,162,860,000.00 | $1.00 | 7.14 |
Blackstone Mortgage Trust has higher earnings, but lower revenue than Annaly Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Blackstone Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Blackstone Mortgage Trust has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Summary
Blackstone Mortgage Trust beats Annaly Capital Management on 11 of the 17 factors compared between the two stocks.
