AFRM vs. NLY: Affirm vs. Annaly Capital Management Stock Comparison

Company Profile

Affirm (AFRM) and Annaly Capital Management (NLY) both fall under the Financial Services industry group, but AFRM is classified in Financial Services while NLY is classified in Mortgage Real Estate Investment Trusts (REITs).

Annaly Capital Management (NLY) has more than two decades of public-market history since October 8, 1997, whereas Affirm (AFRM) listed on January 13, 2021 and has a much shorter record to draw on.

Affirm (AFRM) is an ordinary operating company, while Annaly Capital Management (NLY) is a REIT — read its payout ratio and P/E alongside FFO (funds from operations) rather than comparing them directly to AFRM’s multiples.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Affirm (AFRM) carries a highly aggressive beta of 3.70, indicating much higher sensitivity to broad-market moves, whereas Annaly Capital Management (NLY) is closer to market-like at 1.22 — a noticeable difference in market-sensitivity profile.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Affirm (AFRM) at 44.49% sits in the top ROE quartile, while Annaly Capital Management (NLY) at 7.35% is closer to the peer norm — stronger capital efficiency for AFRM.

Annaly Capital Management (NLY) at 80.27% keeps the most of each sales dollar — above its industry’s net margin range — and Affirm (AFRM) at 43.86% also retains a top-quartile share.

Annaly Capital Management (NLY) at 107.33% operates in the top operating margin quartile, ahead of Affirm (AFRM) at 14.82%, which runs around its industry’s norm.

Profitability Metrics

Growth

Both companies are growing quickly, but Annaly Capital Management (NLY) at 87.29% is the standout with revenue growth above its industry range; Affirm (AFRM) at 32.15% also sits in the top quartile.

Both companies show strong earnings momentum, but Affirm (AFRM) at 3,586.67% is the standout with EPS growth above its industry range; Annaly Capital Management (NLY) at 80.25% also sits in the top quartile.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Affirm (AFRM) in Financial Services and Annaly Capital Management (NLY) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Affirm (AFRM) in Financial Services and Annaly Capital Management (NLY) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Affirm (AFRM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Annaly Capital Management (NLY) reports a yield of 15.38%, ranking against industry peers normally.

Annaly Capital Management (NLY) reports payout ratio above 100% at 201.39%, meaning dividends exceeded current-period earnings; Affirm (AFRM) pays no dividend (payout 0.00%).

Dividend Metrics

Valuation

Both Affirm (AFRM) at 11.80 and Annaly Capital Management (NLY) at 13.02 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

Both look expensive on sales: Affirm (AFRM) at 5.03 sits in the upper P/S ratio quartile, and Annaly Capital Management (NLY) at 10.62 prices even higher, above its industry range.

Annaly Capital Management (NLY) at 1.05 is valued about in line with its industry on P/B ratio, while Affirm (AFRM) at 4.01 carries an above-peer premium to book — AFRM is pricier on assets.

Valuation Metrics