Easterly Government Properties (NYSE:DEA – Get Free Report) and Annaly Capital Management (NYSE:NLY – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Easterly Government Properties and Annaly Capital Management, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Easterly Government Properties | 0 | 1 | 1 | 0 | 2.50 |
Annaly Capital Management | 0 | 2 | 8 | 0 | 2.80 |
Easterly Government Properties currently has a consensus target price of $14.50, indicating a potential upside of 7.09%. Annaly Capital Management has a consensus target price of $21.33, indicating a potential upside of 7.58%. Given Annaly Capital Management’s stronger consensus rating and higher possible upside, analysts clearly believe Annaly Capital Management is more favorable than Easterly Government Properties.
Dividends
Earnings and Valuation
This table compares Easterly Government Properties and Annaly Capital Management”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Easterly Government Properties | $296.42 million | 4.83 | $18.80 million | $0.18 | 75.22 |
Annaly Capital Management | $3.73 billion | 2.98 | -$1.64 billion | ($0.07) | -283.29 |
Easterly Government Properties has higher earnings, but lower revenue than Annaly Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Easterly Government Properties and Annaly Capital Management’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Easterly Government Properties | 6.25% | 1.34% | 0.62% |
Annaly Capital Management | 2.59% | 14.75% | 1.57% |
Volatility & Risk
Easterly Government Properties has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.
Institutional and Insider Ownership
86.5% of Easterly Government Properties shares are owned by institutional investors. Comparatively, 51.6% of Annaly Capital Management shares are owned by institutional investors. 8.1% of Easterly Government Properties shares are owned by insiders. Comparatively, 0.2% of Annaly Capital Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Annaly Capital Management beats Easterly Government Properties on 9 of the 16 factors compared between the two stocks.
About Easterly Government Properties
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).
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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