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Two Harbors Investment Corp TWO

Morningstar Rating
$12.13 +0.23 (1.93%)
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About Quantitative Ratings

Morningstar Quantitative Ratings for Stocks are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with quantitative ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.

Price vs Fair Value

TWO is trading at a 35% discount.
Price
$11.93
Fair Value
$11.16
Uncertainty
Very High
1-Star Price
$65.60
5-Star Price
$98.67
Economic Moat
Kqn
Capital Allocation
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News

Trading Information

Previous Close Price
$11.90
Day Range
$11.8712.17
52-Week Range
$9.8314.59
Bid/Ask
$12.06 / $12.15
Market Cap
$1.26 Bil
Volume/Avg
1.0 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
39.71
Price/Sales
35.82
Dividend Yield (Trailing)
15.13%
Dividend Yield (Forward)
15.13%
Total Yield
15.13%

Company Profile

Two Harbors Investment Corp is a real estate investment trust primarily focused on investing in, financing, and managing residential mortgage-backed securities, or RMBS; residential mortgage loans; mortgage servicing rights; and commercial real estate. The majority of the company's investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. Two Harbors derives nearly all of its revenue in the form of interest income collected from its investments. Most of this income is generated by available-for-sale securities, while residential mortgage loans held for investment in securitization trusts also contribute a sizable amount.
Sector
Real Estate
Industry
REIT - Mortgage
Stock Style Box
Small Value
Total Number of Employees
466

Comparables

Valuation

Metric
TWO
CIM
ARR
Price/Earnings (Normalized)
39.717.729.16
Price/Book Value
0.770.370.68
Price/Sales
35.824.49
Price/Cash Flow
3.983.7718.14
Price/Earnings
TWO
CIM
ARR

Financial Strength

Metric
TWO
CIM
ARR
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
TWO
CIM
ARR
Return on Assets (Normalized)
0.08%0.98%−0.58%
Return on Equity (Normalized)
0.72%5.09%−5.83%
Return on Invested Capital (Normalized)
Return on Assets
TWO
CIM
ARR
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Mortgage Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NLY
Annaly Capital Management IncRrvbtfl$9.0 Bil
AGNC
AGNC Investment CorpPthxm$6.3 Bil
STWD
Starwood Property Trust IncZgth$6.0 Bil
RITM
Rithm Capital CorpVxrnm$5.2 Bil
BXMT
Blackstone Mortgage Trust Inc APvmw$3.2 Bil
ABR
Arbor Realty Trust IncBwvgg$2.4 Bil
ARI
Apollo Commercial Real Estate Finance IncGvdv$1.5 Bil
RC
Ready Capital CorpDdfkq$1.5 Bil
LADR
Ladder Capital Corp Class AYmc$1.3 Bil
CMTG
Claros Mortgage Trust IncHzkq$1.2 Bil

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