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AMH vs. NLY: A Head-to-Head Stock Comparison

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Here’s a clear look at AMH and NLY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMH’s market capitalization stands at 13.16 billion USD, while NLY’s is 11.79 billion USD, indicating their market valuations are broadly comparable.

NLY carries a higher beta at 1.30, indicating it’s more sensitive to market moves, while AMH (beta: 0.77) exhibits greater stability.

SymbolAMHNLY
Company NameAmerican Homes 4 RentAnnaly Capital Management, Inc.
CountryUSUS
SectorReal EstateReal Estate
IndustryREIT - ResidentialREIT - Mortgage
CEOBryan SmithDavid L. Finkelstein
Price35.6 USD19.49 USD
Market Cap13.16 billion USD11.79 billion USD
Beta0.771.30
ExchangeNYSENYSE
IPO DateAugust 1, 2013October 8, 1997
ADRNoNo

Historical Performance

This chart compares the performance of AMH and NLY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMH vs. NLY: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMH

5.78%

REIT - Residential Industry

Max
23.34%
Q3
9.08%
Median
3.28%
Q1
-1.03%
Min
-7.42%

Return on Equity is often not a primary performance indicator in the REIT - Residential industry.

NLY

5.39%

REIT - Mortgage Industry

Max
12.70%
Q3
7.37%
Median
5.39%
Q1
2.17%
Min
-2.11%

NLY’s Return on Equity of 5.39% is on par with the norm for the REIT - Mortgage industry, indicating its profitability relative to shareholder equity is typical for the sector.

AMH vs. NLY: A comparison of their ROE against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Return on Invested Capital

AMH

4.43%

REIT - Residential Industry

Max
5.46%
Q3
5.07%
Median
3.70%
Q1
2.44%
Min
-1.04%

Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Residential industry.

NLY

101.77%

REIT - Mortgage Industry

Max
101.77%
Q3
58.98%
Median
12.80%
Q1
0.05%
Min
-60.52%

Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Mortgage industry.

AMH vs. NLY: A comparison of their ROIC against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Net Profit Margin

AMH

23.15%

REIT - Residential Industry

Max
38.86%
Q3
24.60%
Median
7.62%
Q1
-2.65%
Min
-12.57%

In the REIT - Residential industry, Net Profit Margin is often not the primary profitability metric.

NLY

10.55%

REIT - Mortgage Industry

Max
72.17%
Q3
41.09%
Median
13.11%
Q1
-0.02%
Min
-57.90%

NLY’s Net Profit Margin of 10.55% is aligned with the median group of its peers in the REIT - Mortgage industry. This indicates its ability to convert revenue into profit is typical for the sector.

AMH vs. NLY: A comparison of their Net Profit Margin against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Operating Profit Margin

AMH

24.05%

REIT - Residential Industry

Max
45.77%
Q3
30.12%
Median
19.58%
Q1
17.52%
Min
8.22%

In the REIT - Residential industry, Operating Profit Margin is often not the primary measure of operational efficiency.

NLY

60.02%

REIT - Mortgage Industry

Max
148.75%
Q3
52.15%
Median
28.62%
Q1
-45.10%
Min
-135.41%

An Operating Profit Margin of 60.02% places NLY in the upper quartile for the REIT - Mortgage industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMH vs. NLY: A comparison of their Operating Margin against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Profitability at a Glance

SymbolAMHNLY
Return on Equity (TTM)5.78%5.39%
Return on Assets (TTM)3.08%0.63%
Return on Invested Capital (TTM)4.43%101.77%
Net Profit Margin (TTM)23.15%10.55%
Operating Profit Margin (TTM)24.05%60.02%
Gross Profit Margin (TTM)56.17%34.39%

Financial Strength

Current Ratio

AMH

0.07

REIT - Residential Industry

Max
2.65
Q3
2.05
Median
0.62
Q1
0.13
Min
0.05

For the REIT - Residential industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

NLY

--

REIT - Mortgage Industry

Max
20.03
Q3
20.03
Median
1.05
Q1
0.07
Min
0.03

For the REIT - Mortgage industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AMH vs. NLY: A comparison of their Current Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Debt-to-Equity Ratio

AMH

0.69

REIT - Residential Industry

Max
1.76
Q3
1.60
Median
1.15
Q1
0.71
Min
0.06

Falling into the lower quartile for the REIT - Residential industry, AMH’s Debt-to-Equity Ratio of 0.69 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NLY

1.88

REIT - Mortgage Industry

Max
5.93
Q3
4.11
Median
3.19
Q1
1.81
Min
0.10

NLY’s Debt-to-Equity Ratio of 1.88 is typical for the REIT - Mortgage industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AMH vs. NLY: A comparison of their D/E Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Interest Coverage Ratio

AMH

2.47

REIT - Residential Industry

Max
4.02
Q3
3.42
Median
2.09
Q1
0.77
Min
-0.24

AMH’s Interest Coverage Ratio of 2.47 is positioned comfortably within the norm for the REIT - Residential industry, indicating a standard and healthy capacity to cover its interest payments.

NLY

0.82

REIT - Mortgage Industry

Max
1.07
Q3
0.71
Median
0.30
Q1
-0.21
Min
-0.35

NLY’s Interest Coverage Ratio of 0.82 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.

AMH vs. NLY: A comparison of their Interest Coverage against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Financial Strength at a Glance

SymbolAMHNLY
Current Ratio (TTM)0.07--
Quick Ratio (TTM)0.07--
Debt-to-Equity Ratio (TTM)0.691.88
Debt-to-Asset Ratio (TTM)0.370.23
Net Debt-to-EBITDA Ratio (TTM)5.595.80
Interest Coverage Ratio (TTM)2.470.82

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMH and NLY. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMH vs. NLY: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMH vs. NLY: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMH vs. NLY: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMH

3.15%

REIT - Residential Industry

Max
6.90%
Q3
5.06%
Median
3.70%
Q1
3.35%
Min
1.32%

AMH’s Dividend Yield of 3.15% is in the lower quartile for the REIT - Residential industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

NLY

13.85%

REIT - Mortgage Industry

Max
20.56%
Q3
14.95%
Median
12.50%
Q1
10.34%
Min
3.46%

NLY’s Dividend Yield of 13.85% is consistent with its peers in the REIT - Mortgage industry, providing a dividend return that is standard for its sector.

AMH vs. NLY: A comparison of their Dividend Yield against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Dividend Payout Ratio

AMH

72.77%

REIT - Residential Industry

Max
647.59%
Q3
358.74%
Median
123.11%
Q1
73.29%
Min
0.00%

AMH’s Dividend Payout Ratio of 72.77% is in the lower quartile for the REIT - Residential industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

NLY

232.90%

REIT - Mortgage Industry

Max
1,680.28%
Q3
262.99%
Median
171.52%
Q1
119.25%
Min
83.21%

NLY’s Dividend Payout Ratio of 232.90% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

AMH vs. NLY: A comparison of their Payout Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Dividend at a Glance

SymbolAMHNLY
Dividend Yield (TTM)3.15%13.85%
Dividend Payout Ratio (TTM)72.77%232.90%

Valuation

Price-to-Earnings Ratio

AMH

32.19

REIT - Residential Industry

Max
209.03
Q3
105.65
Median
37.25
Q1
29.74
Min
25.36

The P/E Ratio is often not the primary metric for valuation in the REIT - Residential industry.

NLY

17.25

REIT - Mortgage Industry

Max
23.03
Q3
19.03
Median
15.87
Q1
8.43
Min
5.35

NLY’s P/E Ratio of 17.25 is within the middle range for the REIT - Mortgage industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AMH vs. NLY: A comparison of their P/E Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Forward P/E to Growth Ratio

AMH

-0.32

REIT - Residential Industry

Max
8.96
Q3
6.40
Median
3.83
Q1
0.72
Min
0.26

The Forward PEG Ratio is often not a primary valuation metric in the REIT - Residential industry.

NLY

13.03

REIT - Mortgage Industry

Max
3.93
Q3
3.21
Median
1.58
Q1
0.72
Min
0.40

NLY’s Forward PEG Ratio of 13.03 is exceptionally high for the REIT - Mortgage industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

AMH vs. NLY: A comparison of their Forward PEG Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Price-to-Sales Ratio

AMH

7.43

REIT - Residential Industry

Max
10.14
Q3
8.03
Median
7.51
Q1
5.76
Min
3.29

AMH’s P/S Ratio of 7.43 aligns with the market consensus for the REIT - Residential industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NLY

1.88

REIT - Mortgage Industry

Max
8.88
Q3
5.48
Median
3.94
Q1
2.10
Min
1.20

The P/S Ratio is often not a primary valuation tool in the REIT - Mortgage industry.

AMH vs. NLY: A comparison of their P/S Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Price-to-Book Ratio

AMH

1.84

REIT - Residential Industry

Max
4.04
Q3
3.00
Median
2.31
Q1
1.78
Min
0.81

AMH’s P/B Ratio of 1.84 is within the conventional range for the REIT - Residential industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NLY

0.88

REIT - Mortgage Industry

Max
1.07
Q3
0.86
Median
0.73
Q1
0.54
Min
0.21

NLY’s P/B Ratio of 0.88 is in the upper tier for the REIT - Mortgage industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AMH vs. NLY: A comparison of their P/B Ratio against their respective REIT - Residential and REIT - Mortgage industry benchmarks.

Valuation at a Glance

SymbolAMHNLY
Price-to-Earnings Ratio (P/E, TTM)32.1917.25
Forward PEG Ratio (TTM)-0.3213.03
Price-to-Sales Ratio (P/S, TTM)7.431.88
Price-to-Book Ratio (P/B, TTM)1.840.88
Price-to-Free Cash Flow Ratio (P/FCF, TTM)18.6814.99
EV-to-EBITDA (TTM)20.698.63
EV-to-Sales (TTM)10.195.72