Contrasting Annaly Capital Management (NYSE:NLY) & New York Mortgage Trust (NASDAQ:NYMTN)

Annaly Capital Management (NYSE:NLY) and New York Mortgage Trust (NASDAQ:NYMTN) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Annaly Capital Management and New York Mortgage Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	-$316.59 million	-32.06	-$1.64 billion	($0.97)	-20.91
New York Mortgage Trust	$266.51 million	N/A	N/A	N/A	N/A

New York Mortgage Trust has higher revenue and earnings than Annaly Capital Management.

Profitability

This table compares Annaly Capital Management and New York Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	-12.02%	15.24%	1.60%
New York Mortgage Trust	N/A	N/A	N/A

Dividends

Annaly Capital Management pays an annual dividend of $2.60 per share and has a dividend yield of 12.8%. New York Mortgage Trust pays an annual dividend of $2.00 per share and has a dividend yield of 8.5%. Annaly Capital Management pays out -268.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

51.6% of Annaly Capital Management shares are held by institutional investors. 0.2% of Annaly Capital Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Annaly Capital Management and New York Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	0	2	7	0	2.78
New York Mortgage Trust	0	0	0	0	N/A

Annaly Capital Management currently has a consensus target price of $21.50, indicating a potential upside of 6.02%. Given Annaly Capital Management’s higher probable upside, equities analysts plainly believe Annaly Capital Management is more favorable than New York Mortgage Trust.

Summary

Annaly Capital Management beats New York Mortgage Trust on 8 of the 10 factors compared between the two stocks.

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.

About New York Mortgage Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company also 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. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.