Annaly Capital Management (NYSE:NLY – Get Free Report) and Braemar Hotels & Resorts (NYSE:BHR – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
51.6% of Annaly Capital Management shares are held by institutional investors. Comparatively, 64.8% of Braemar Hotels & Resorts shares are held by institutional investors. 0.2% of Annaly Capital Management shares are held by company insiders. Comparatively, 1.8% of Braemar Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Annaly Capital Management and Braemar Hotels & Resorts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Annaly Capital Management | 0 | 1 | 8 | 0 | 2.89 |
| Braemar Hotels & Resorts | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Annaly Capital Management pays an annual dividend of $2.60 per share and has a dividend yield of 13.7%. Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 6.6%. Annaly Capital Management pays out -3,714.3% of its earnings in the form of a dividend. Braemar Hotels & Resorts pays out -26.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several 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 Braemar Hotels & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Annaly Capital Management | 2.59% | 14.75% | 1.57% |
| Braemar Hotels & Resorts | -0.30% | -0.78% | -0.10% |
Risk & Volatility
Annaly Capital Management has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Braemar Hotels & Resorts has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.
Earnings and Valuation
This table compares Annaly Capital Management and Braemar Hotels & Resorts”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Annaly Capital Management | $320.33 million | 33.21 | -$1.64 billion | ($0.07) | -271.14 |
| Braemar Hotels & Resorts | $732.60 million | 0.28 | -$27.02 million | ($0.77) | -3.94 |
Braemar Hotels & Resorts has higher revenue and earnings than Annaly Capital Management. Annaly Capital Management is trading at a lower price-to-earnings ratio than Braemar Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.
Summary
Annaly Capital Management beats Braemar Hotels & Resorts on 10 of the 16 factors compared between the two stocks.
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.
About Braemar Hotels & Resorts
Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).
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