ARE vs. NLY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARE and NLY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARE’s market capitalization stands at 13.31 billion USD, while NLY’s is 11.79 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.27 for ARE and 1.30 for NLY, both stocks show similar sensitivity to overall market movements.
| Symbol | ARE | NLY |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | Annaly Capital Management, Inc. |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Office | REIT - Mortgage |
| CEO | Peter M. Moglia | David L. Finkelstein |
| Price | 76.92 USD | 19.49 USD |
| Market Cap | 13.31 billion USD | 11.79 billion USD |
| Beta | 1.27 | 1.30 |
| Exchange | NYSE | NYSE |
| IPO Date | May 28, 1997 | October 8, 1997 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARE 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.
Profitability
Return on Equity
ARE
0.72%
REIT - Office Industry
- Max
- 9.40%
- Q3
- 3.15%
- Median
- 0.71%
- Q1
- -2.53%
- Min
- -10.33%
Return on Equity is often not a primary performance indicator in the REIT - Office 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.
Return on Invested Capital
ARE
194.97%
REIT - Office Industry
- Max
- 5.21%
- Q3
- 3.70%
- Median
- 2.50%
- Q1
- 1.66%
- Min
- 0.56%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Office 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.
Net Profit Margin
ARE
5.70%
REIT - Office Industry
- Max
- 21.26%
- Q3
- 7.69%
- Median
- 3.16%
- Q1
- -9.27%
- Min
- -30.12%
In the REIT - Office 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.
Operating Profit Margin
ARE
38.61%
REIT - Office Industry
- Max
- 38.61%
- Q3
- 26.61%
- Median
- 20.01%
- Q1
- 11.93%
- Min
- -1.11%
In the REIT - Office 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.
Profitability at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Return on Equity (TTM) | 0.72% | 5.39% |
| Return on Assets (TTM) | 0.37% | 0.63% |
| Return on Invested Capital (TTM) | 194.97% | 101.77% |
| Net Profit Margin (TTM) | 5.70% | 10.55% |
| Operating Profit Margin (TTM) | 38.61% | 60.02% |
| Gross Profit Margin (TTM) | 37.76% | 34.39% |
Financial Strength
Current Ratio
ARE
--
REIT - Office Industry
- Max
- 4.34
- Q3
- 2.61
- Median
- 1.46
- Q1
- 0.88
- Min
- 0.01
For the REIT - Office 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.
Debt-to-Equity Ratio
ARE
--
REIT - Office Industry
- Max
- 2.25
- Q3
- 1.66
- Median
- 1.33
- Q1
- 0.95
- Min
- 0.63
Debt-to-Equity Ratio data for ARE is currently unavailable.
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.
Interest Coverage Ratio
ARE
6.43
REIT - Office Industry
- Max
- 2.60
- Q3
- 1.69
- Median
- 1.28
- Q1
- 0.62
- Min
- -0.11
With an Interest Coverage Ratio of 6.43, ARE demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Office industry. This stems from either robust earnings or a conservative debt load.
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.
Financial Strength at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | -- | 1.88 |
| Debt-to-Asset Ratio (TTM) | -- | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.23 | 5.80 |
| Interest Coverage Ratio (TTM) | 6.43 | 0.82 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARE and NLY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARE
6.84%
REIT - Office Industry
- Max
- 14.12%
- Q3
- 6.26%
- Median
- 4.71%
- Q1
- 2.62%
- Min
- 0.00%
With a Dividend Yield of 6.84%, ARE offers a more attractive income stream than most of its peers in the REIT - Office industry, signaling a strong commitment to shareholder returns.
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.
Dividend Payout Ratio
ARE
492.05%
REIT - Office Industry
- Max
- 1,116.08%
- Q3
- 556.10%
- Median
- 233.84%
- Q1
- 123.25%
- Min
- 49.88%
ARE’s Dividend Payout Ratio of 492.05% 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.
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.
Dividend at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Dividend Yield (TTM) | 6.84% | 13.85% |
| Dividend Payout Ratio (TTM) | 492.05% | 232.90% |
Valuation
Price-to-Earnings Ratio
ARE
95.37
REIT - Office Industry
- Max
- 90.97
- Q3
- 72.34
- Median
- 44.07
- Q1
- 23.31
- Min
- 19.29
The P/E Ratio is often not the primary metric for valuation in the REIT - Office 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.
Forward P/E to Growth Ratio
ARE
-0.95
REIT - Office Industry
- Max
- 24.48
- Q3
- 14.97
- Median
- 1.22
- Q1
- 0.24
- Min
- 0.04
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Office 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.
Price-to-Sales Ratio
ARE
5.51
REIT - Office Industry
- Max
- 5.80
- Q3
- 5.05
- Median
- 3.85
- Q1
- 2.27
- Min
- 1.19
ARE’s P/S Ratio of 5.51 is in the upper echelon for the REIT - Office industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
Price-to-Book Ratio
ARE
0.60
REIT - Office Industry
- Max
- 2.09
- Q3
- 1.38
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.14
ARE’s P/B Ratio of 0.60 is in the lower quartile for the REIT - Office industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
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.
Valuation at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 95.37 | 17.25 |
| Forward PEG Ratio (TTM) | -0.95 | 13.03 |
| Price-to-Sales Ratio (P/S, TTM) | 5.51 | 1.88 |
| Price-to-Book Ratio (P/B, TTM) | 0.60 | 0.88 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.70 | 14.99 |
| EV-to-EBITDA (TTM) | 6.16 | 8.63 |
| EV-to-Sales (TTM) | 5.32 | 5.72 |