Two Harbors Investment (TWO) and GGP (GGP) Critical Analysis

Two Harbors Investment (NYSE:TWO) and GGP (NYSE:GGP) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Earnings & Valuation

This table compares Two Harbors Investment and GGP’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Two Harbors Investment $870.03 million 4.26 -$44.29 million $1.97 6.90
GGP N/A N/A N/A N/A N/A

GGP has lower revenue, but higher earnings than Two Harbors Investment.

Insider & Institutional Ownership

56.9% of Two Harbors Investment shares are held by institutional investors. Comparatively, 86.2% of GGP shares are held by institutional investors. 0.9% of Two Harbors Investment shares are held by company insiders. Comparatively, 35.0% of GGP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Two Harbors Investment and GGP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Two Harbors Investment 0 3 5 0 2.63
GGP 0 2 1 0 2.33

Two Harbors Investment presently has a consensus price target of $15.88, suggesting a potential upside of 16.81%. GGP has a consensus price target of $24.50, suggesting a potential upside of ∞. Given GGP’s higher probable upside, analysts plainly believe GGP is more favorable than Two Harbors Investment.

Dividends

Two Harbors Investment pays an annual dividend of $1.88 per share and has a dividend yield of 13.8%. GGP pays an annual dividend of $0.88 per share. Two Harbors Investment pays out 95.4% 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 has increased its dividend for 2 consecutive years and GGP has increased its dividend for 7 consecutive years.

Profitability

This table compares Two Harbors Investment and GGP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Two Harbors Investment -4.12% 13.56% 1.57%
GGP N/A N/A N/A

About Two Harbors Investment

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), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); non-agency securities collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and 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.

About GGP

GGP Inc. is an S&P 500 company focused exclusively on owning, managing, leasing and redeveloping high-quality retail properties throughout the United States. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.

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