NLY vs. SCHW: Annaly Capital Management vs. Charles Schwab Stock Comparison

Company Profile

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

Charles Schwab (SCHW) 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 SCHW’s multiples.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Annaly Capital Management (NLY) at 7.35% and Charles Schwab (SCHW) at 21.12% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

Annaly Capital Management (NLY) at 80.27% keeps the most of each sales dollar — above its industry’s net margin range — and Charles Schwab (SCHW) at 39.33% also retains a top-quartile share.

Annaly Capital Management (NLY) at 107.33% operates in the top operating margin quartile, ahead of Charles Schwab (SCHW) at 52.67%, which runs around its industry’s norm.

Profitability Metrics

Growth

Annaly Capital Management (NLY) at 87.29% clears its industry range for revenue growth, far stronger top-line momentum than Charles Schwab (SCHW) at 22.01%, which is closer to a typical peer reading.

Both Annaly Capital Management (NLY) at 80.25% and Charles Schwab (SCHW) at 55.52% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Annaly Capital Management (NLY) in Financial Services and Charles Schwab (SCHW) 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: Annaly Capital Management (NLY) in Financial Services and Charles Schwab (SCHW) 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

Charles Schwab (SCHW) at 1.33% pays an industry-typical yield; Annaly Capital Management (NLY) at 15.38% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

Annaly Capital Management (NLY) reports payout ratio above 100% at 201.39%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Charles Schwab (SCHW) reports 21.03%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both Annaly Capital Management (NLY) at 13.02 and Charles Schwab (SCHW) at 15.64 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: Charles Schwab (SCHW) at 5.85 sits in the upper P/S ratio quartile, and Annaly Capital Management (NLY) at 10.62 prices even higher, above its industry range.

On P/B ratio, both Annaly Capital Management (NLY) at 1.05 and Charles Schwab (SCHW) at 3.08 are valued close to their industries’ norm against book — neither stands out from peers.

Valuation Metrics