NLY vs MFA

For growth investors, MFA Financial, Inc.

(MFA) is the stronger pick with 213. 0% revenue growth year-over-year, versus 5. 4% for Annaly Capital Management, Inc. (NLY). MFA Financial, Inc. (MFA) offers the better valuation at 5. 7x trailing P/E (7. 0x 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, MFA Financial, Inc.

(MFA) is the cheapest at 5. 7x versus Annaly Capital Management, Inc. at 7. 7x. On forward P/E, MFA Financial, Inc. is actually cheaper at 7. 0x.

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

(NLY) delivered a total return of +2. 2%, compared to -3. 3% for MFA Financial, Inc. (MFA). Over 10 years, the gap is even starker: NLY returned +39. 3% versus MFA's +10. 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 MFA Financial, Inc. 's 0. 77β — meaning MFA is approximately 21% more volatile than NLY relative to the S&P 500. On balance sheet safety, MFA Financial, Inc. (MFA) carries a lower debt/equity ratio of 6% versus 7% for Annaly Capital Management, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MFA Financial, Inc.

(MFA) is pulling ahead at 213. 0% versus 5. 4% for Annaly Capital Management, Inc. (NLY). On earnings-per-share growth, the picture is similar: MFA Financial, Inc. grew EPS 104. 9% 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 20. 2% for MFA Financial, Inc. — 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 78. 8% for MFA. 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, MFA Financial, Inc.

(MFA) trades at 7. 0x forward P/E versus 7. 5x for Annaly Capital Management, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NLY: 9. 5% to $24. 50.

All stocks in this comparison pay dividends.

MFA Financial, Inc. (MFA) offers the highest yield at 18. 7%, versus 13. 1% for Annaly Capital Management, Inc. (NLY).

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: +39. 3%, MFA: +10. 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: NLY is a mid-cap deep-value stock; MFA is a small-cap high-growth 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.