Two Harbors Investment (TWO) vs. Easterly Government Properties (DEA) Head to Head Survey

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

Analyst Recommendations

This is a breakdown of current ratings for Two Harbors Investment and Easterly Government Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Two Harbors Investment 0 0 4 0 3.00
Easterly Government Properties 0 0 2 0 3.00

Two Harbors Investment currently has a consensus target price of $17.50, indicating a potential upside of 8.16%. Easterly Government Properties has a consensus target price of $23.50, indicating a potential upside of 20.64%. Given Easterly Government Properties’ higher possible upside, analysts plainly believe Easterly Government Properties is more favorable than Two Harbors Investment.

Volatility & Risk

Two Harbors Investment has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Institutional & Insider Ownership

65.7% of Two Harbors Investment shares are owned by institutional investors. Comparatively, 99.0% of Easterly Government Properties shares are owned by institutional investors. 1.4% of Two Harbors Investment shares are owned by insiders. Comparatively, 14.9% of Easterly Government Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Two Harbors Investment and Easterly Government Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Two Harbors Investment 72.16% 10.83% 1.40%
Easterly Government Properties 3.23% 0.58% 0.32%

Valuation and Earnings

This table compares Two Harbors Investment and Easterly Government Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Two Harbors Investment $745.09 million 3.81 $348.57 million $2.08 7.78
Easterly Government Properties $130.67 million 6.81 $4.44 million $1.26 15.46

Two Harbors Investment has higher revenue and earnings than Easterly Government Properties. Two Harbors Investment is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

Two Harbors Investment pays an annual dividend of $1.88 per share and has a dividend yield of 11.6%. Easterly Government Properties pays an annual dividend of $1.04 per share and has a dividend yield of 5.3%. Two Harbors Investment pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Easterly Government Properties pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Easterly Government Properties has raised its dividend for 2 consecutive years.

Two Harbors Investment Company Profile

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, hybrid mortgage loans, or derivatives; 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.

Easterly Government Properties Company Profile

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased primarily through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

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