ANNALY CAP MGMT/SH (NYSE:NLY) vs. Empire State Realty Trust (NYSE:ESRT) Financial Comparison

Empire State Realty Trust (NYSE:ESRT) and ANNALY CAP MGMT/SH (NYSE:NLY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Empire State Realty Trust and ANNALY CAP MGMT/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Empire State Realty Trust 0 3 0 0 2.00
ANNALY CAP MGMT/SH 0 0 5 0 3.00

Empire State Realty Trust presently has a consensus target price of $20.00, suggesting a potential upside of 33.33%. ANNALY CAP MGMT/SH has a consensus target price of $10.50, suggesting a potential upside of 13.64%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than ANNALY CAP MGMT/SH.

Risk and Volatility

Empire State Realty Trust has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, ANNALY CAP MGMT/SH has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Empire State Realty Trust and ANNALY CAP MGMT/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Empire State Realty Trust 10.32% 3.81% 1.81%
ANNALY CAP MGMT/SH -77.68% 12.34% 1.48%

Earnings and Valuation

This table compares Empire State Realty Trust and ANNALY CAP MGMT/SH’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Empire State Realty Trust $731.51 million 3.63 $66.54 million $0.98 15.31
ANNALY CAP MGMT/SH $1.43 billion 9.38 $54.40 million $1.20 7.70

Empire State Realty Trust has higher earnings, but lower revenue than ANNALY CAP MGMT/SH. ANNALY CAP MGMT/SH is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.1% of Empire State Realty Trust shares are held by institutional investors. Comparatively, 57.2% of ANNALY CAP MGMT/SH shares are held by institutional investors. 11.7% of Empire State Realty Trust shares are held by company insiders. Comparatively, 0.3% of ANNALY CAP MGMT/SH shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.8%. ANNALY CAP MGMT/SH pays an annual dividend of $1.20 per share and has a dividend yield of 13.0%. Empire State Realty Trust pays out 42.9% of its earnings in the form of a dividend. ANNALY CAP MGMT/SH pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Empire State Realty Trust beats ANNALY CAP MGMT/SH on 9 of the 16 factors compared between the two stocks.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of December 31, 2018, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.

About ANNALY CAP MGMT/SH

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. It also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company 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. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.

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