Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) and Annaly Capital Management (NYSE:NLY – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Bimini Capital Management and Annaly Capital Management, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bimini Capital Management | 0 | 0 | 0 | 0 | 0.00 |
| Annaly Capital Management | 1 | 4 | 5 | 0 | 2.40 |
Annaly Capital Management has a consensus price target of $21.71, suggesting a potential downside of 2.85%. Given Annaly Capital Management’s stronger consensus rating and higher probable upside, analysts clearly believe Annaly Capital Management is more favorable than Bimini Capital Management.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bimini Capital Management | $11.90 million | 1.75 | -$1.31 million | $0.09 | 22.97 |
| Annaly Capital Management | $4.84 billion | 3.15 | $1.00 billion | $2.16 | 10.35 |
Annaly Capital Management has higher revenue and earnings than Bimini Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Bimini Capital Management, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bimini Capital Management and Annaly Capital Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bimini Capital Management | 5.98% | 11.89% | 0.63% |
| Annaly Capital Management | 26.68% | 15.96% | 1.71% |
Risk and Volatility
Bimini Capital Management has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional & Insider Ownership
51.6% of Annaly Capital Management shares are held by institutional investors. 45.4% of Bimini Capital Management shares are held by insiders. Comparatively, 0.2% of Annaly Capital Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Annaly Capital Management beats Bimini Capital Management on 12 of the 14 factors compared between the two stocks.
About Bimini Capital Management
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.
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.
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