The St. Joe (NYSE:JOE) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Dividends
The St. Joe pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 10.6%. 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. Annaly Capital Management has raised its dividend for 1 consecutive years. Annaly Capital Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
The St. Joe has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for The St. Joe and Annaly Capital Management, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The St. Joe | 0 | 0 | 0 | 0 | N/A |
Annaly Capital Management | 0 | 2 | 10 | 0 | 2.83 |
Annaly Capital Management has a consensus target price of $8.1042, indicating a potential downside of 2.48%. Given Annaly Capital Management's higher possible upside, analysts clearly believe Annaly Capital Management is more favorable than The St. Joe.
Valuation and Earnings
This table compares The St. Joe and Annaly Capital Management's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The St. Joe | $127.10 million | 23.32 | $26.77 million | N/A | N/A |
Annaly Capital Management | $3.79 billion | 3.07 | $-2,162,860,000.00 | $1.00 | 8.31 |
The St. Joe has higher earnings, but lower revenue than Annaly Capital Management.
Profitability
This table compares The St. Joe and Annaly Capital Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The St. Joe | 24.55% | 6.38% | 3.61% |
Annaly Capital Management | -20.12% | 13.27% | 1.57% |
Institutional & Insider Ownership
96.4% of The St. Joe shares are held by institutional investors. Comparatively, 44.6% of Annaly Capital Management shares are held by institutional investors. 44.3% of The St. Joe shares are held by insiders. Comparatively, 0.4% of Annaly Capital Management shares are held by 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.
Summary
The St. Joe beats Annaly Capital Management on 9 of the 15 factors compared between the two stocks.