Two Harbors Investment Corp. (TWO) and AGNC Investment Corp. (NASDAQ:AGNCN) Contrasting side by side

Two Harbors Investment Corp. (NYSE:TWO) and AGNC Investment Corp. (NASDAQ:AGNCN) compete with each other in the REIT – Residential sector. We will analyze and compare their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Two Harbors Investment Corp. 315.90M 11.23 109.69M 0.08 173.50
AGNC Investment Corp. 229.00M 42.28 93.00M 0.21 122.38

Table 1 shows the top-line revenue, earnings per share (EPS) and valuation for Two Harbors Investment Corp. and AGNC Investment Corp. AGNC Investment Corp. has lower revenue, but higher earnings than Two Harbors Investment Corp. The business with a higher P/E ratio is currently more expensive of the two stocks. Two Harbors Investment Corp. is thus currently the expensive of the two stocks because it has a higher P/E ratio.

Profitability

Table 2 hightlights the net margins, return on assets and return on equity of the two companies.

Net Margins Return on Equity Return on Assets
Two Harbors Investment Corp. -34.72% 22.9% 2.7%
AGNC Investment Corp. 40.61% 0% 0%

Dividends

Two Harbors Investment Corp. shareholders receive an annual dividend of $1.88 per share which is subject to 13.35% dividend yield. Meanhile, AGNC Investment Corp.’s yearly dividend is $2.16 per share and 8.35% dividend yield.

Analyst Recommendations

Recommendations and Ratings for Two Harbors Investment Corp. and AGNC Investment Corp. can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Two Harbors Investment Corp. 0 0 2 3.00
AGNC Investment Corp. 0 0 0 0.00

Two Harbors Investment Corp. has a 15.00% upside potential and an average target price of $16.25.

Institutional & Insider Ownership

Two Harbors Investment Corp. and AGNC Investment Corp. has shares owned by institutional investors as follows: 64.4% and 25.57%. Insiders owned 0.9% of Two Harbors Investment Corp. shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Two Harbors Investment Corp. -0.22% -4.87% -2.12% -10.91% -5.71% 8.1%
AGNC Investment Corp. -0.39% 2.07% 0.71% -2.5% 2.19% 1.66%

For the past year Two Harbors Investment Corp.’s stock price has bigger growth than AGNC Investment Corp.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), mortgage servicing rights, commercial real estate assets, and other financial assets in the United States. The companyÂ’s target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and non-agency RMBS collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM mortgage loans, and subprime mortgage loans. Its target assets also comprise floating and fixed rate commercial real estate loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and certain non-hedging transactions. The company qualifies as a REIT for federal income tax purposes. As a REIT, the company would not be subject to federal income tax, if it distributes at least 90% of net taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in New York, New York.