TWO vs. PMT, ARI, RC, 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 PennyMac Mortgage Investment Trust (PMT), Apollo Commercial Real Estate Finance (ARI), Ready Capital (RC), 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.
PennyMac Mortgage Investment Trust (NYSE:PMT) and Two Harbors Investment (NYSE:TWO) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, community ranking, media sentiment, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
Two Harbors Investment received 106 more outperform votes than PennyMac Mortgage Investment Trust when rated by MarketBeat users. Likewise, 67.90% of users gave Two Harbors Investment an outperform vote while only 63.26% of users gave PennyMac Mortgage Investment Trust an outperform vote.
67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 64.2% of Two Harbors Investment shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by insiders. Comparatively, 0.6% of Two Harbors Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Two Harbors Investment has a net margin of 56.90% compared to Two Harbors Investment's net margin of 45.19%. Two Harbors Investment's return on equity of 13.25% beat PennyMac Mortgage Investment Trust's return on equity.
PennyMac Mortgage Investment Trust has higher earnings, but lower revenue than Two Harbors Investment. Two Harbors Investment is trading at a lower price-to-earnings ratio than PennyMac Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
PennyMac Mortgage Investment Trust currently has a consensus price target of $14.92, suggesting a potential downside of 0.82%. Two Harbors Investment has a consensus price target of $14.57, suggesting a potential upside of 11.83%. Given PennyMac Mortgage Investment Trust's higher possible upside, analysts plainly believe Two Harbors Investment is more favorable than PennyMac Mortgage Investment Trust.
PennyMac Mortgage Investment Trust has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
In the previous week, Two Harbors Investment had 2 more articles in the media than PennyMac Mortgage Investment Trust. MarketBeat recorded 6 mentions for Two Harbors Investment and 4 mentions for PennyMac Mortgage Investment Trust. Two Harbors Investment's average media sentiment score of 0.98 beat PennyMac Mortgage Investment Trust's score of 0.53 indicating that PennyMac Mortgage Investment Trust is being referred to more favorably in the media.
PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 10.6%. Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 13.8%. PennyMac Mortgage Investment Trust pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Two Harbors Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
PennyMac Mortgage Investment Trust and Two Harbors Investment tied by winning 10 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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