Annaly Capital Management (NYSE:NLY – Get Rating) and Rexford Industrial Realty (NYSE:REXR – Get Rating) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Annaly Capital Management and Rexford Industrial Realty, as reported by MarketBeat.
Get Annaly Capital Management alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Annaly Capital Management | 0 | 4 | 2 | 0 | 2.33 |
| Rexford Industrial Realty | 0 | 1 | 3 | 0 | 2.75 |
Annaly Capital Management currently has a consensus target price of $6.67, suggesting a potential upside of 17.99%. Rexford Industrial Realty has a consensus target price of $77.80, suggesting a potential upside of 37.53%. Given Rexford Industrial Realty's stronger consensus rating and higher probable upside, analysts plainly believe Rexford Industrial Realty is more favorable than Annaly Capital Management.
Dividends
Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 15.6%. Rexford Industrial Realty pays an annual dividend of $1.26 per share and has a dividend yield of 2.2%. Annaly Capital Management pays out 34.9% of its earnings in the form of a dividend. Rexford Industrial Realty pays out 132.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has increased its dividend for 6 consecutive years. Annaly Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.Profitability
This table compares Annaly Capital Management and Rexford Industrial Realty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Annaly Capital Management | 178.91% | 16.72% | 2.39% |
| Rexford Industrial Realty | 29.79% | 3.17% | 2.28% |
Earnings & Valuation
This table compares Annaly Capital Management and Rexford Industrial Realty'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 | $1.98 billion | 4.63 | $2.39 billion | $2.52 | 2.24 |
| Rexford Industrial Realty | $452.24 million | 21.40 | $128.24 million | $0.95 | 59.55 |
Annaly Capital Management has higher revenue and earnings than Rexford Industrial Realty. Annaly Capital Management is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
46.0% of Annaly Capital Management shares are owned by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are owned by institutional investors. 0.3% of Annaly Capital Management shares are owned by company insiders. Comparatively, 1.5% of Rexford Industrial Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Annaly Capital Management has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
Summary
Annaly Capital Management beats Rexford Industrial Realty on 9 of the 17 factors compared between the two stocks.
About Annaly Capital Management
(Get Rating)
Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance and corporate middle market lending. The company invests in agency mortgage-backed securities, mortgage servicing rights, Agency commercial mortgage-backed securities, non-Agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts, and other commercial real estate investments. 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 founded in 1996 and is based in New York, New York.
About Rexford Industrial Realty
(Get Rating)
Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
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