Two Harbors Investments (NYSE:TWO – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
64.2% of Two Harbors Investments shares are owned by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are owned by institutional investors. 0.6% of Two Harbors Investments shares are owned by company insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Two Harbors Investments and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Two Harbors Investments | -6.09% | 12.79% | 1.44% |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Two Harbors Investments | $412.00 million | 3.08 | -$454.30 million | ($0.74) | -16.29 |
| Claros Mortgage Trust | $187.83 million | 1.34 | -$489.07 million | ($3.83) | -0.47 |
Two Harbors Investments has higher revenue and earnings than Claros Mortgage Trust. Two Harbors Investments is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Two Harbors Investments has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Two Harbors Investments and Claros Mortgage Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Two Harbors Investments | 2 | 4 | 0 | 1 | 2.00 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
Two Harbors Investments presently has a consensus target price of $12.75, indicating a potential upside of 5.77%. Claros Mortgage Trust has a consensus target price of $2.50, indicating a potential upside of 40.06%. Given Claros Mortgage Trust’s higher probable upside, analysts clearly believe Claros Mortgage Trust is more favorable than Two Harbors Investments.
Summary
Two Harbors Investments beats Claros Mortgage Trust on 9 of the 14 factors compared between the two stocks.
About Two Harbors Investments
Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. It qualifies as a REIT for federal income tax purposes. As a REIT, the company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in St. Louis Park, Minnesota.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
Receive News & Ratings for Two Harbors Investments Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Two Harbors Investments and related companies with MarketBeat.com's FREE daily email newsletter.
