Annaly Capital Management (NYSE:NLY – Get Rating) and Medalist Diversified REIT (NASDAQ:MDRR – Get Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Volatility & Risk
Annaly Capital Management has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Profitability
This table compares Annaly Capital Management and Medalist Diversified REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Annaly Capital Management | -38.80% | 18.86% | 2.25% |
| Medalist Diversified REIT | -46.98% | -25.85% | -5.49% |
Dividends
Analyst Recommendations
This is a summary of current ratings and recommmendations for Annaly Capital Management and Medalist Diversified REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Annaly Capital Management | 0 | 2 | 5 | 0 | 2.71 |
| Medalist Diversified REIT | 0 | 0 | 1 | 0 | 3.00 |
Annaly Capital Management presently has a consensus price target of $22.28, suggesting a potential upside of 11.89%. Medalist Diversified REIT has a consensus price target of $10.00, suggesting a potential upside of 95.42%. Given Medalist Diversified REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Medalist Diversified REIT is more favorable than Annaly Capital Management.
Earnings and Valuation
This table compares Annaly Capital Management and Medalist Diversified REIT’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Annaly Capital Management | $2.78 billion | 3.54 | $1.73 billion | ($2.25) | -8.85 |
| Medalist Diversified REIT | $11.09 million | 1.02 | -$4.77 million | ($1.83) | -2.80 |
Annaly Capital Management has higher revenue and earnings than Medalist Diversified REIT. Annaly Capital Management is trading at a lower price-to-earnings ratio than Medalist Diversified REIT, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.8% of Annaly Capital Management shares are owned by institutional investors. Comparatively, 9.8% of Medalist Diversified REIT shares are owned by institutional investors. 0.3% of Annaly Capital Management shares are owned by insiders. Comparatively, 4.1% of Medalist Diversified REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Annaly Capital Management beats Medalist Diversified REIT on 11 of the 16 factors compared between the two stocks.
About Annaly Capital Management
Annaly Capital Management, Inc. engages in the investment and financing of residential and commercial assets. It operates through the following investment groups: Agency, Residential Credit, and Mortgage Servicing Rights. The Agency group invests in agency mortgage-backed securities. The Residential Credit group involves non-agency residential mortgage assets within securitized products and whole loan markets. The Mortgage Servicing Rights group provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans. The company was founded by Michael A. J. Farrell and Wellington Jamie Denahan-Norris on February 18, 1997 and is headquartered in New York, NY.
About Medalist Diversified REIT
Medalist Diversified REIT, Inc. engages in the acquisition, reposition, renovate, lease, and management of income-producing properties. It focuses on commercial properties, including flex-industrial and retail properties, multi-family residential properties, and limited service hotel properties. It operates through the following segments: Hotel Properties, Retail Center Properties, and Flex Center Property. The company was founded on September 28, 2015 and is headquartered in Baltimore, MA.
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