Analyzing Essential Properties Realty Trust (NYSE:EPRT) and ANNALY CAP MGMT/SH (NYSE:NLY)

Essential Properties Realty Trust (NYSE:EPRT) and ANNALY CAP MGMT/SH (NYSE:NLY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Volatility and Risk

Essential Properties Realty Trust has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, ANNALY CAP MGMT/SH has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Essential Properties Realty Trust and ANNALY CAP MGMT/SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Essential Properties Realty Trust $96.22 million 17.54 $15.61 million N/A N/A
ANNALY CAP MGMT/SH $1.43 billion 9.08 $54.40 million $1.20 7.46

ANNALY CAP MGMT/SH has higher revenue and earnings than Essential Properties Realty Trust.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Essential Properties Realty Trust and ANNALY CAP MGMT/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essential Properties Realty Trust 0 4 6 0 2.60
ANNALY CAP MGMT/SH 0 0 5 0 3.00

Essential Properties Realty Trust presently has a consensus price target of $20.13, indicating a potential downside of 8.94%. ANNALY CAP MGMT/SH has a consensus price target of $10.40, indicating a potential upside of 16.20%. Given ANNALY CAP MGMT/SH’s stronger consensus rating and higher possible upside, analysts plainly believe ANNALY CAP MGMT/SH is more favorable than Essential Properties Realty Trust.

Dividends

Essential Properties Realty Trust pays an annual dividend of $0.88 per share and has a dividend yield of 4.0%. ANNALY CAP MGMT/SH pays an annual dividend of $1.20 per share and has a dividend yield of 13.4%. ANNALY CAP MGMT/SH pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

74.4% of Essential Properties Realty Trust shares are owned by institutional investors. Comparatively, 56.1% of ANNALY CAP MGMT/SH shares are owned by institutional investors. 2.1% of Essential Properties Realty Trust shares are owned by company insiders. Comparatively, 0.3% of ANNALY CAP MGMT/SH shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Essential Properties Realty Trust and ANNALY CAP MGMT/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essential Properties Realty Trust 21.30% 2.73% 1.69%
ANNALY CAP MGMT/SH -155.89% 12.04% 1.38%

Summary

Essential Properties Realty Trust beats ANNALY CAP MGMT/SH on 9 of the 15 factors compared between the two stocks.

Essential Properties Realty Trust Company Profile

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical services, convenience stores, entertainment, early childhood education, and health and fitness on a long-term basis. As of December 31, 2018, it had a portfolio of 677 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is based in Princeton, New Jersey.

ANNALY CAP MGMT/SH Company Profile

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. It also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.

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