Two Harbors Investment (FRA:2H2) Moat Score: 2/10 (As of Jul. 04, 2026)


FRA:2H2 Two Harbors Investment Corp FRA:2H2
31 GF Score
Price €10.42
! 5 Warning Signs
View Full Analysis

What is Two Harbors Investment Moat Score?

Two Harbors Investment FRA:2H2 -1.23% 31 Moat Score is 2 as of Jul. 04, 2026. GuruFocus rates FRA:2H2 with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 989 REITs companies, Two Harbors Investment ranks better than 70.07% on this metric.

Two Harbors Investment has the Moat Score of 2, which implies that the company might have No Moat - Very weak/transient advantages.

Two Harbors Investment has No Moat: Two Harbors Investment Corp operates in a highly competitive mortgage REIT sector with limited differentiation. It lacks significant customer switching costs, proprietary technology, or strong brand loyalty, resulting in a very weak competitive position.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Two Harbors Investment might have No Moat - Very weak/transient advantages.

Two Harbors Investment  (FRA:2H2) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Two Harbors Investment Moat Score Related Terms

FRA:2H2 vs LADR, ORC, ARI: Moat Score Comparison

For the REIT - Mortgage subindustry, Two Harbors Investment's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs REITs Industry

For the REITs industry and Real Estate sector, Two Harbors Investment's Moat Score distribution charts can be found below:

* The bar in red indicates where Two Harbors Investment's Moat Score falls into.


FRA:2H2
31GF Score
Two Harbors Investment Corp FRA:2H2
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 2 mean?
Two Harbors Investment (FRA:2H2) has a Moat Score of 2 as of Jul. 04, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Two Harbors Investment ranks #296 out of 989 companies in the REITs industry, placing it in the top 29.9%.
Is Two Harbors Investment's Moat Score too high?
Two Harbors Investment's current Moat Score is 2. Based on the distribution chart, Two Harbors Investment ranks #296 out of 989 companies in the REITs industry, which is above the industry midpoint. Overall, Two Harbors Investment has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Moat Score compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #296 out of 989 companies for Moat Score. This puts Two Harbors Investment in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a REITs company?
A good Moat Score depends on the REITs industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Two Harbors Investment's current Moat Score is 2. 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?
Two Harbors Investment (FRA:2H2) has a current Moat Score of 2. The current Moat Score is 2. Two Harbors Investment's overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Moat Score is 2 as of Jul. 04, 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.

Two Harbors Investment Business Description

Industry Real EstateREITs
Address 1601 Utica Avenue South, Suite 900, St. Louis Park, MN, USA, 55416
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.
31GF Score

Get the complete analysis for FRA:2H2

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€10.42
Price