Two Harbors Investment (TWO) Competitors

ARMOUR Residential REIT (NYSE:ARR) and Two Harbors Investment (NYSE:TWO) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, media sentiment, dividends, community ranking, earnings, profitability, risk and institutional ownership.

Which has more volatility & risk, ARR or TWO?

ARMOUR Residential REIT has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Which has stronger earnings and valuation, ARR or TWO?

Two Harbors Investment has higher revenue and earnings than ARMOUR Residential REIT. ARMOUR Residential REIT 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARMOUR Residential REIT	-$478K	-3,901.91	-$14.39M	-$0.43	-43.17
Two Harbors Investment	$510.75M	2.80	$298.17M	$2.11	6.52

Does the media prefer ARR or TWO?

In the previous week, ARMOUR Residential REIT had 2 more articles in the media than Two Harbors Investment. MarketBeat recorded 7 mentions for ARMOUR Residential REIT and 5 mentions for Two Harbors Investment. ARMOUR Residential REIT's average media sentiment score of 1.67 beat Two Harbors Investment's score of 0.59 indicating that ARMOUR Residential REIT is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
ARMOUR Residential REIT	6 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Two Harbors Investment	2 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community favor ARR or TWO?

Two Harbors Investment received 258 more outperform votes than ARMOUR Residential REIT when rated by MarketBeat users. Likewise, 66.92% of users gave Two Harbors Investment an outperform vote while only 49.07% of users gave ARMOUR Residential REIT an outperform vote.

Company	Underperform	Outperform
ARMOUR Residential REIT	Outperform Votes 264 49.07%	Underperform Votes 274 50.93%
Two Harbors Investment	Outperform Votes 522 66.92%	Underperform Votes 258 33.08%

Do insiders & institutionals have more ownership in ARR or TWO?

54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 64.2% of Two Harbors Investment shares are owned by institutional investors. 0.4% of ARMOUR Residential REIT shares are owned by company insiders. Comparatively, 0.6% of Two Harbors Investment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Is ARR or TWO more profitable?

Two Harbors Investment has a net margin of 66.24% compared to ARMOUR Residential REIT's net margin of -2.61%. ARMOUR Residential REIT's return on equity of 16.00% beat Two Harbors Investment's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
ARMOUR Residential REIT	-2.61%	16.00%	1.65%
Two Harbors Investment	66.24%	6.52%	0.81%

Is ARR or TWO a better dividend stock?

ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 15.5%. Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 13.1%. ARMOUR Residential REIT pays out -669.8% of its earnings in the form of a dividend. Two Harbors Investment pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate ARR or TWO?

ARMOUR Residential REIT currently has a consensus target price of $20.50, suggesting a potential upside of 10.42%. Two Harbors Investment has a consensus target price of $13.96, suggesting a potential upside of 1.40%. Given ARMOUR Residential REIT's higher possible upside, equities analysts clearly believe ARMOUR Residential REIT is more favorable than Two Harbors Investment.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARMOUR Residential REIT	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Two Harbors Investment	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

Summary

Two Harbors Investment beats ARMOUR Residential REIT on 13 of the 20 factors compared between the two stocks.