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Two Harbors InvestmentFRA:2H2 53 Equity-to-Asset is 0.20 as of Jun. 2026, which is 25% above its 10-year median of 0.16. GuruFocus rates FRA:2H2 with a GF Score™ of 53/100 and a GF Value™ of €16.65 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 926 REITs companies, Two Harbors Investment ranks worse than 93.41% on this metric.
Two Harbors Investment (FRA:2H2) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Two Harbors Investment Equity-to-Asset Related Terms
Two Harbors Investment Equity-to-Asset Historical Data
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The historical data trend for Two Harbors Investment's Equity-to-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2H2 vs LADR, ORC, CIM: Equity-to-Asset Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Two Harbors Investment Equity-to-Asset vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Equity-to-Asset falls into.
Two Harbors Investment Equity-to-Asset Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Two Harbors Investment's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Two Harbors Investment (FRA:2H2) has a Equity-to-Asset of 0.20 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Two Harbors Investment and its competitors. This is 25% above median its historical median of 0.16. Over the past decade, Two Harbors Investment's Equity-to-Asset has ranged from 0.13 to 0.24. According to the industry distribution chart, Two Harbors Investment ranks #865 out of 926 companies in the REITs industry, placing it in the top 93.4%.
Is Two Harbors Investment's Equity-to-Asset too high?
Two Harbors Investment's current Equity-to-Asset of 0.20 is 25% above median its 10-year median of 0.16. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.24. The REITs industry median Equity-to-Asset is 0.59. Two Harbors Investment's value of 0.20 is 66.1% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #865 out of 926 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Two Harbors Investment has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Equity-to-Asset compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #865 out of 926 companies for Equity-to-Asset. This places Two Harbors Investment in the lower half of its industry. The industry median Equity-to-Asset is 0.59. Two Harbors Investment's value of 0.20 is 66.1% below this benchmark. Historically, Two Harbors Investment's own Equity-to-Asset has ranged from 0.13 to 0.24 over the past decade. While the company's 10-year median is 0.16 vs. the industry median of 0.59, Two Harbors Investment has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for a REITs company?
The median Equity-to-Asset among REITs companies is 0.59, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current Equity-to-Asset of 0.20 is 66.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median Equity-to-Asset is 0.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current Equity-to-Asset is 0.20, which is 25% above median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two Harbors Investment stock overvalued right now?
Based on GuruFocus' analysis, Two Harbors Investment (FRA:2H2) is currently considered Possible Value Trap. The stock's GF Value™ is €16.65, compared to a current price of €10.47 — trading 37.1% below its estimated fair value. The current Equity-to-Asset is 0.20, which is 25% above median its 10-year median of 0.16 and 66.1% below the REITs industry median of 0.59. Two Harbors Investment's overall GF Score™ is 53/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Equity-to-Asset is 0.20 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Two Harbors Investment (FRA:2H2) Overvalued in 2026?
Based on GuruFocus' analysis, Two Harbors Investment stock appears to be undervalued.
The current stock price of €10.47 is trading 37.1% below its estimated GF Value™ of €16.65.
GuruFocus considers Two Harbors Investment to be Possible Value Trap.
Key valuation signals for FRA:2H2:
Equity-to-Asset: 0.20 (25% above median its 10-year median of 0.16)
GF Value™: €16.65 vs. price of €10.47 (37.1% below fair value)
Industry Position: 66.1% below the REITs median (#865 of 926)
No single metric tells the full story. See the FRA:2H2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two Harbors Investment Corp is a real estate investment trust focused on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights, and commercial real estate. The majority of its investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. The company derives revenues mainly from its MSR and Agency RMBS portfolio, including servicing fee income, float income, and interest income, as well as mortgage loan origination activities established to support the MSR portfolio. Its investment portfolio is subject to market risks, mainly interest rate, basis, and prepayment risk. The majority of income is generated by available-for-sale securities.
53GF Score
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