Two Harbors InvestmentFRA:2H2 +0.93%31 Net Margin % is 37.63% as of Mar. 2026, which is 43% below its 10-year median of 65.87. GuruFocus rates FRA:2H2 with a GF Score™ of 31/100. The stock has 6 warning signs investors should review. Among 928 REITs companies, Two Harbors Investment ranks worse than 97.63% on this metric.
The historical rank and industry rank for Two Harbors Investment's Net Margin % or its related term are showing as below:
FRA:2H2'
s Net Margin % Range Over the Past 10 Years
Min: -394.84 Med: 65.87 Max: 104.36
Current: -147.58
FRA:2H2's Net Margin % is ranked worse than 97.63% of 928
companies
in the REITs industry
Industry Median: 45.23
vs FRA:2H2: -147.58
Two Harbors Investment (FRA:2H2) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Two Harbors Investment Net Margin % Related Terms
Two Harbors Investment Net Margin % Historical Data
* 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: Net Margin % Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Net Margin % distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Net Margin % falls into.
* 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 Net Margin % of 37.63% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Two Harbors Investment and its competitors. This is 43% below median its historical median of 65.87. According to the industry distribution chart, Two Harbors Investment ranks #906 out of 928 companies in the REITs industry, placing it in the top 97.6%.
Is Two Harbors Investment's Net Margin % too high?
Two Harbors Investment's current Net Margin % of 37.63% is 43% below median its 10-year median of 65.87. The REITs industry median Net Margin % is 45.23. Two Harbors Investment's value of 37.63% is 16.8% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #906 out of 928 companies in the REITs industry, which is in the bottom quartile relative to peers. 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 Net Margin % compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #906 out of 928 companies for Net Margin %. This places Two Harbors Investment in the lower half of its industry. The industry median Net Margin % is 45.23. Two Harbors Investment's value of 37.63% is 16.8% below this benchmark. While the company's 10-year median is 65.87 vs. the industry median of 45.23, 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 Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 45.23, based on 928 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current Net Margin % of 37.63% is 16.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median Net Margin % is 45.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current Net Margin % is 37.63%, which is 43% below median its own 10-year median of 65.87. 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 Net Margin % of 37.63%. The current Net Margin % is 37.63%, which is 43% below median its 10-year median of 65.87 and 16.8% below the REITs industry median of 45.23. Two Harbors Investment's overall GF Score™ is 31/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Net Margin % is 37.63% as of Mar. 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 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
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