Two Harbors Investment (NYSE:TWO – Get Free Report) and Equity LifeStyle Properties (NYSE:ELS – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Profitability
This table compares Two Harbors Investment and Equity LifeStyle Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Two Harbors Investment | -22.14% | 2.47% | 0.28% |
| Equity LifeStyle Properties | 21.09% | 20.90% | 5.62% |
Dividends
Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 14.9%. Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 3.1%. Two Harbors Investment pays out -90.0% of its earnings in the form of a dividend. Equity LifeStyle Properties pays out 113.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Two Harbors Investment | 0 | 7 | 1 | 0 | 2.13 |
| Equity LifeStyle Properties | 0 | 6 | 1 | 0 | 2.14 |
Two Harbors Investment presently has a consensus price target of $14.50, suggesting a potential upside of 19.74%. Equity LifeStyle Properties has a consensus price target of $70.15, suggesting a potential upside of 13.94%. Given Two Harbors Investment’s higher probable upside, equities analysts clearly believe Two Harbors Investment is more favorable than Equity LifeStyle Properties.
Insider & Institutional Ownership
64.2% of Two Harbors Investment shares are held by institutional investors. Comparatively, 97.2% of Equity LifeStyle Properties shares are held by institutional investors. 0.5% of Two Harbors Investment shares are held by insiders. Comparatively, 1.4% of Equity LifeStyle Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Two Harbors Investment has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Equity LifeStyle Properties has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Valuation & Earnings
This table compares Two Harbors Investment and Equity LifeStyle Properties’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Two Harbors Investment | $480.36 million | 2.61 | -$106.37 million | ($2.00) | -6.06 |
| Equity LifeStyle Properties | $1.40 billion | 8.18 | $314.21 million | $1.68 | 36.65 |
Equity LifeStyle Properties has higher revenue and earnings than Two Harbors Investment. Two Harbors Investment is trading at a lower price-to-earnings ratio than Equity LifeStyle Properties, indicating that it is currently the more affordable of the two stocks.
Summary
Equity LifeStyle Properties beats Two Harbors Investment on 11 of the 15 factors compared between the two stocks.
About Two Harbors Investment
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 Equity LifeStyle Properties
We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 29, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,465 sites.
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