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 Profile
Both ARE and NLY are Real Estate Investment Trusts (REITs). These entities are required to distribute the majority of their taxable income to shareholders, often resulting in higher dividend yields.
| Symbol | ARE | NLY |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | Annaly Capital Management, Inc. |
| Country | United States | United States |
| GICS Sector | Real Estate | Financials |
| GICS Industry | Office REITs | Mortgage Real Estate Investment Trusts (REITs) |
| Market Capitalization | 12.84 billion USD | 13.45 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 28, 1997 | October 8, 1997 |
| Security Type | REIT | REIT |
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.
Historical Performance at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| 5-Day Price Return | -10.13% | 1.21% |
| 13-Week Price Return | -2.40% | 6.24% |
| 26-Week Price Return | -12.79% | 6.72% |
| 52-Week Price Return | -33.76% | 8.21% |
| Month-to-Date Return | -9.74% | 3.66% |
| Year-to-Date Return | -22.89% | 14.48% |
| 10-Day Avg. Volume | 1.83M | 7.45M |
| 3-Month Avg. Volume | 1.58M | 7.32M |
| 3-Month Volatility | 29.56% | 18.02% |
| Beta | 1.37 | 1.34 |
Profitability
Return on Equity (TTM)
ARE
-0.06%
Office REITs Industry
- Max
- 9.67%
- Q3
- 6.69%
- Median
- 5.08%
- Q1
- 1.57%
- Min
- -0.31%
ARE has a negative Return on Equity of -0.06%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
NLY
5.68%
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 10.10%
- Q3
- 7.88%
- Median
- 5.73%
- Q1
- 4.74%
- Min
- 3.80%
NLY’s Return on Equity of 5.68% is on par with the norm for the Mortgage Real Estate Investment Trusts (REITs) industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ARE
-0.32%
Office REITs Industry
- Max
- 85.58%
- Q3
- 47.35%
- Median
- 43.44%
- Q1
- 6.51%
- Min
- -1.31%
In the Office REITs industry, Net Profit Margin is often not the primary profitability metric.
NLY
13.07%
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 20.08%
- Q3
- 18.34%
- Median
- 16.36%
- Q1
- 12.08%
- Min
- 11.08%
NLY’s Net Profit Margin of 13.07% is aligned with the median group of its peers in the Mortgage Real Estate Investment Trusts (REITs) industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ARE
12.67%
Office REITs Industry
- Max
- 115.21%
- Q3
- 70.41%
- Median
- 29.81%
- Q1
- 26.15%
- Min
- 12.67%
In the Office REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.
NLY
13.59%
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 18.89%
- Q3
- 18.81%
- Median
- 13.59%
- Q1
- 7.26%
- Min
- -0.63%
NLY’s Operating Profit Margin of 13.59% is around the midpoint for the Mortgage Real Estate Investment Trusts (REITs) industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Return on Equity (TTM) | -0.06% | 5.68% |
| Return on Assets (TTM) | -0.03% | 0.69% |
| Net Profit Margin (TTM) | -0.32% | 13.07% |
| Operating Profit Margin (TTM) | 12.67% | 13.59% |
| Gross Profit Margin (TTM) | 71.25% | 16.92% |
Financial Strength
Current Ratio (MRQ)
ARE
0.40
Office REITs Industry
- Max
- 2.11
- Q3
- 1.13
- Median
- 0.63
- Q1
- 0.40
- Min
- 0.14
ARE’s Current Ratio of 0.40 aligns with the median group of the Office REITs industry, indicating that its short-term liquidity is in line with its sector peers.
NLY
0.06
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 10.81
- Q3
- 6.99
- Median
- 0.42
- Q1
- 0.12
- Min
- 0.01
For the Mortgage Real Estate Investment Trusts (REITs) industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
ARE
0.77
Office REITs Industry
- Max
- 1.63
- Q3
- 1.36
- Median
- 0.87
- Q1
- 0.77
- Min
- 0.44
ARE’s Debt-to-Equity Ratio of 0.77 is typical for the Office REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
NLY
7.16
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 8.75
- Q3
- 5.86
- Median
- 3.93
- Q1
- 3.23
- Min
- 1.88
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Mortgage Real Estate Investment Trusts (REITs) industry.
Interest Coverage Ratio (TTM)
ARE
2.75
Office REITs Industry
- Max
- 3.98
- Q3
- 3.17
- Median
- 1.73
- Q1
- 1.18
- Min
- 0.20
ARE’s Interest Coverage Ratio of 2.75 is positioned comfortably within the norm for the Office REITs industry, indicating a standard and healthy capacity to cover its interest payments.
NLY
--
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Mortgage Real Estate Investment Trusts (REITs) industry.
Financial Strength at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Current Ratio (MRQ) | 0.40 | 0.06 |
| Quick Ratio (MRQ) | 0.40 | 0.06 |
| Debt-to-Equity Ratio (MRQ) | 0.77 | 7.16 |
| Interest Coverage Ratio (TTM) | 2.75 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ARE
6.75%
Office REITs Industry
- Max
- 8.13%
- Q3
- 6.22%
- Median
- 5.09%
- Q1
- 3.83%
- Min
- 2.00%
With a Dividend Yield of 6.75%, ARE offers a more attractive income stream than most of its peers in the Office REITs industry, signaling a strong commitment to shareholder returns.
NLY
12.41%
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 16.10%
- Q3
- 13.14%
- Median
- 10.97%
- Q1
- 9.39%
- Min
- 5.33%
NLY’s Dividend Yield of 12.41% is consistent with its peers in the Mortgage Real Estate Investment Trusts (REITs) industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ARE
174.29%
Office REITs Industry
- Max
- 277.06%
- Q3
- 174.29%
- Median
- 94.90%
- Q1
- 92.69%
- Min
- 21.37%
ARE’s Dividend Payout Ratio of 174.29% is within the typical range for the Office REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
NLY
224.87%
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 224.87%
- Q3
- 211.76%
- Median
- 173.38%
- Q1
- 125.80%
- Min
- 67.75%
NLY’s Dividend Payout Ratio of 224.87% is in the upper quartile for the Mortgage Real Estate Investment Trusts (REITs) industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Dividend Yield (TTM) | 6.75% | 12.41% |
| Dividend Payout Ratio (TTM) | 174.29% | 224.87% |
Valuation
Price-to-Earnings Ratio (TTM)
ARE
--
Office REITs Industry
- Max
- 78.58
- Q3
- 40.95
- Median
- 23.89
- Q1
- 14.94
- Min
- 5.75
The P/E Ratio is often not the primary metric for valuation in the Office REITs industry.
NLY
18.12
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 26.90
- Q3
- 19.48
- Median
- 18.36
- Q1
- 12.64
- Min
- 7.82
The P/E Ratio is often not the primary metric for valuation in the Mortgage Real Estate Investment Trusts (REITs) industry.
Price-to-Sales Ratio (TTM)
ARE
4.20
Office REITs Industry
- Max
- 14.25
- Q3
- 8.80
- Median
- 6.86
- Q1
- 4.53
- Min
- 2.59
In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 4.20 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
NLY
2.37
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 3.98
- Q3
- 3.48
- Median
- 2.39
- Q1
- 1.89
- Min
- 1.28
NLY’s P/S Ratio of 2.37 aligns with the market consensus for the Mortgage Real Estate Investment Trusts (REITs) industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ARE
0.73
Office REITs Industry
- Max
- 2.08
- Q3
- 1.35
- Median
- 1.06
- Q1
- 0.72
- Min
- 0.45
ARE’s P/B Ratio of 0.73 is within the conventional range for the Office REITs 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
0.85
Mortgage Real Estate Investment Trusts (REITs) Industry
- Max
- 1.06
- Q3
- 0.99
- Median
- 0.91
- Q1
- 0.80
- Min
- 0.69
NLY’s P/B Ratio of 0.85 is within the conventional range for the Mortgage Real Estate Investment Trusts (REITs) 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.
Valuation at a Glance
| Symbol | ARE | NLY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 18.12 |
| Price-to-Sales Ratio (TTM) | 4.20 | 2.37 |
| Price-to-Book Ratio (MRQ) | 0.73 | 0.85 |
| Price-to-Free Cash Flow Ratio (TTM) | 538.62 | 4.74 |