Critical survey of CTO Realty Growth (NYSE:CTO) and Annaly Capital Management (NYSE:NLY)

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CTO Real Estate Growth (NYSE: CTOGet a rating) and Annaly Capital Management (NYSE: NLYGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on their risk strength, valuation, profitability, analyst recommendations, earnings, institutional ownership, and dividends.

Dividends

CTO Realty Growth pays an annual dividend of $4.48 per share and has a dividend yield of 7.2%. Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 13.5%. CTO Realty Growth pays out 140.0% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Annaly Capital Management distributes 50.6% of its profits as a dividend. Annaly Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and insider ownership

65.4% of CTO Realty Growth shares are held by institutional investors. Comparatively, 41.8% of Annaly Capital Management shares are held by institutional investors. 5.6% of CTO Realty Growth shares are held by insiders of the company. By comparison, 0.3% of shares in Annaly Capital Management are held by insiders of the company. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

Analyst Notes

This is a summary of recent ratings and recommendations for CTO Realty Growth and Annaly Capital Management, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Real estate growth CTO 0 0 2 0 3.00
Annaly Capital Management 0 4 2 0 2.33

CTO Realty Growth currently has a consensus price target of $73.50, suggesting a potential upside of 18.32%. Annaly Capital Management has a consensus price target of $7.29, suggesting a potential upside of 11.66%. Given CTO Realty Growth’s higher consensus rating and likely higher upside, research analysts clearly believe that CTO Realty Growth is more favorable than Annaly Capital Management.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of CTO Realty Growth and Annaly Capital Management.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Real estate growth CTO $70.27 million 5.33 $27.61 million $3.20 7:41 p.m.
Annaly Capital Management $1.98 billion 4.81 $2.39 billion $1.74 3.75

Annaly Capital Management has higher revenue and profit than CTO Realty Growth. Annaly Capital Management trades at a lower price-to-earnings ratio than CTO Realty Growth, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

CTO Realty Growth has a beta of 0.78, suggesting its stock price is 22% less volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.14, suggesting its stock price its stock is 14% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of CTO Realty Growth and Annaly Capital Management.

Net margins Return on equity return on assets
Real estate growth CTO 30.72% 5.45% 3.12%
Annaly Capital Management 141.90% 15.45% 2.27%

Summary

CTO Realty Growth beats Annaly Capital Management on 8 out of 15 factors compared between the two stocks.

Company Profile CTO Realty Growth (Get a rating)

CTO Realty Growth, Inc. is a Florida-based, publicly traded real estate company with approximately 2.4 million square feet of income properties in diversified markets in the United States and an ownership interest of approximately 23.5 % in Alpine Income Property Trust, Inc., a publicly traded net leasehold real estate investment trust (NYSE: PINE).

Annaly Capital Management Company Profile (Get a rating)

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage financing and middle market business lending. The Company invests in agency mortgage-backed securities, mortgage servicing rights, agency commercial mortgage-backed securities, non-agency residential mortgage assets, residential mortgages, transfer securities credit risk, corporate debt and other commercial real estate investments. It 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.



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