CIM vs NLY

For growth investors, Chimera Investment Corporation (CIM) is the stronger pick with 218.

2% revenue growth year-over-year, versus 5. 4% for Annaly Capital Management, Inc. (NLY). Chimera Investment Corporation (CIM) offers the better valuation at 4. 9x trailing P/E (6. 4x 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.

On trailing P/E, Chimera Investment Corporation (CIM) is the cheapest at 4.

9x versus Annaly Capital Management, Inc. at 7. 7x. On forward P/E, Chimera Investment Corporation is actually cheaper at 6. 4x.

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

(NLY) delivered a total return of +1. 4%, compared to -37. 5% for Chimera Investment Corporation (CIM). Over 10 years, the gap is even starker: NLY returned +35. 5% versus CIM's +19. 1%. 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 Chimera Investment Corporation's 0. 81β — meaning CIM is approximately 26% more volatile than NLY relative to the S&P 500. On balance sheet safety, Chimera Investment Corporation (CIM) 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), Chimera Investment Corporation (CIM) is pulling ahead at 218.

2% versus 5. 4% for Annaly Capital Management, Inc. (NLY). On earnings-per-share growth, the picture is similar: Chimera Investment Corporation grew EPS 150. 0% year-over-year, compared to 80. 2% for Annaly Capital Management, Inc.. 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 28. 1% for Chimera 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 93. 2% for CIM. 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.

On forward earnings alone, Chimera Investment Corporation (CIM) trades at 6.

4x forward P/E versus 7. 5x for Annaly Capital Management, Inc. — 1. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NLY: 9. 4% to $24. 50.

All stocks in this comparison pay dividends.

Annaly Capital Management, Inc. (NLY) offers the highest yield at 13. 1%, versus 7. 6% for Chimera Investment Corporation (CIM).

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. 1% yield). Both have compounded well over 10 years (NLY: +35. 5%, CIM: +19. 1%), 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: CIM is a small-cap high-growth stock; NLY is a mid-cap deep-value stock. 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.