CHMI vs NLY

For growth investors, Cherry Hill Mortgage Investment Corporation (CHMI) is the stronger pick with 204.

8% revenue growth year-over-year, versus 5. 4% for Annaly Capital Management, Inc. (NLY). Annaly Capital Management, Inc. (NLY) offers the better valuation at 7. 7x trailing P/E (7. 5x forward), making it the more compelling value choice. Analysts rate Annaly Capital Management, Inc. (NLY) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Annaly Capital Management, Inc.

(NLY) delivered a total return of +2. 2%, compared to -36. 9% for Cherry Hill Mortgage Investment Corporation (CHMI). Over 10 years, the gap is even starker: NLY returned +36. 7% versus CHMI's +5. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Annaly Capital Management, Inc.

(NLY) is the lower-risk stock at 0. 64β versus Cherry Hill Mortgage Investment Corporation's 0. 75β — meaning CHMI is approximately 16% more volatile than NLY relative to the S&P 500. On balance sheet safety, Cherry Hill Mortgage Investment Corporation (CHMI) carries a lower debt/equity ratio of 5% versus 7% for Annaly Capital Management, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cherry Hill Mortgage Investment Corporation (CHMI) is pulling ahead at 204.

8% versus 5. 4% for Annaly Capital Management, Inc. (NLY). On earnings-per-share growth, the picture is similar: Annaly Capital Management, Inc. grew EPS 80. 2% year-over-year, compared to -246. 4% for Cherry Hill Mortgage Investment Corporation. Over a 3-year CAGR, CHMI leads at 37. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Annaly Capital Management, Inc.

(NLY) is the more profitable company, earning 30. 3% net margin versus 6. 5% for Cherry Hill Mortgage Investment Corporation — meaning it keeps 30. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NLY leads at 102. 6% versus 55. 9% for CHMI. At the gross margin level — before operating expenses — NLY leads at 99. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, NLY (13.

0% yield) pays a dividend. CHMI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Annaly Capital Management, Inc.

(NLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 64), 13. 0% yield). Both have compounded well over 10 years (NLY: +36. 7%, CHMI: +5. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CHMI is a small-cap high-growth stock; NLY is a mid-cap deep-value stock. NLY pays a dividend while CHMI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.