TWO vs. ARI, RC, PMT, MFA, CIM, ARR, RWT, DX, NYMT, and IVR
Should you be buying Two Harbors Investment stock or one of its competitors? The main competitors of Two Harbors Investment include Apollo Commercial Real Estate Finance (ARI), Ready Capital (RC), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), Chimera Investment (CIM), ARMOUR Residential REIT (ARR), Redwood Trust (RWT), Dynex Capital (DX), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Apollo Commercial Real Estate Finance (NYSE:ARI) and Two Harbors Investment (NYSE:TWO) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, media sentiment, community ranking, institutional ownership, valuation, risk, analyst recommendations and earnings.
Apollo Commercial Real Estate Finance has higher earnings, but lower revenue than Two Harbors Investment. Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Two Harbors Investment, indicating that it is currently the more affordable of the two stocks.
Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 14.1%. Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 13.9%. Apollo Commercial Real Estate Finance pays out -179.5% of its earnings in the form of a dividend. Two Harbors Investment pays out 101.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Commercial Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Apollo Commercial Real Estate Finance currently has a consensus price target of $10.38, indicating a potential upside of 4.32%. Two Harbors Investment has a consensus price target of $14.57, indicating a potential upside of 12.39%. Given Apollo Commercial Real Estate Finance's stronger consensus rating and higher probable upside, analysts clearly believe Two Harbors Investment is more favorable than Apollo Commercial Real Estate Finance.
In the previous week, Two Harbors Investment had 4 more articles in the media than Apollo Commercial Real Estate Finance. MarketBeat recorded 7 mentions for Two Harbors Investment and 3 mentions for Apollo Commercial Real Estate Finance. Apollo Commercial Real Estate Finance's average media sentiment score of 1.38 beat Two Harbors Investment's score of 0.64 indicating that Two Harbors Investment is being referred to more favorably in the news media.
Two Harbors Investment has a net margin of 56.90% compared to Two Harbors Investment's net margin of -28.20%. Two Harbors Investment's return on equity of 5.88% beat Apollo Commercial Real Estate Finance's return on equity.
54.4% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. Comparatively, 64.2% of Two Harbors Investment shares are owned by institutional investors. 0.7% of Apollo Commercial Real Estate Finance shares are owned by insiders. Comparatively, 0.6% of Two Harbors Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Apollo Commercial Real Estate Finance has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.
Two Harbors Investment received 197 more outperform votes than Apollo Commercial Real Estate Finance when rated by MarketBeat users. Likewise, 67.98% of users gave Two Harbors Investment an outperform vote while only 58.86% of users gave Apollo Commercial Real Estate Finance an outperform vote.
Summary
Two Harbors Investment beats Apollo Commercial Real Estate Finance on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TWO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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