Head-To-Head Review: CV (OTCMKTS:CVHL) vs. Annaly Capital Management (NYSE:NLY)

Annaly Capital Management (NYSE:NLY) and CV (OTCMKTS:CVHL) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Insider & Institutional Ownership

51.6% of Annaly Capital Management shares are owned by institutional investors. 0.2% of Annaly Capital Management shares are owned by company insiders. Comparatively, 7.6% of CV shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Annaly Capital Management and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	26.68%	15.96%	1.71%
CV	N/A	N/A	N/A

Valuation and Earnings

This table compares Annaly Capital Management and CV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	$1.71 billion	8.64	$1.00 billion	$2.16	10.02
CV	$25.67 million	0.05	-$18.15 million	N/A	N/A

Annaly Capital Management has higher revenue and earnings than CV.

Analyst Recommendations

This is a summary of current recommendations for Annaly Capital Management and CV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	1	4	5	0	2.40
CV	0	0	0	0	0.00

Annaly Capital Management presently has a consensus price target of $21.71, indicating a potential upside of 0.32%. Given Annaly Capital Management’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Annaly Capital Management is more favorable than CV.

Risk and Volatility

Annaly Capital Management has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, CV has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Summary

Annaly Capital Management beats CV on 11 of the 12 factors compared between the two stocks.

About Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It 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. The company was incorporated in 1996 and is based in New York, New York.

About CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.