Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Two Harbors InvestmentFRA:2H2 +0.19%30 Return-on-Tangible-Asset is 1.57% as of Mar. 2026, which is 32% above its 10-year median of 1.19. GuruFocus rates FRA:2H2 with a GF Score™ of 30/100. The stock has 5 warning signs investors should review. Among 939 REITs companies, Two Harbors Investment ranks worse than 91.48% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Two Harbors Investment's annualizedNet Income for the quarter that ended in Mar. 2026 was €111.7 Mil. Two Harbors Investment's average total tangible assets for the quarter that ended in Mar. 2026 was €7,128.8 Mil. Therefore, Two Harbors Investment's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 1.57%.
The historical rank and industry rank for Two Harbors Investment's Return-on-Tangible-Asset or its related term are showing as below:
FRA:2H2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.28 Med: 1.19 Max: 3.09
Current: -3.77
During the past 13 years, Two Harbors Investment's highest Return-on-Tangible-Asset was 3.09%. The lowest was -6.28%. And the median was 1.19%.
FRA:2H2's Return-on-Tangible-Asset is ranked worse than 91.48% of 939
companies
in the REITs industry
Industry Median: 3.27
vs FRA:2H2: -3.77
Two Harbors Investment (FRA:2H2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Two Harbors Investment Return-on-Tangible-Asset Related Terms
Two Harbors Investment Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Two Harbors Investment's Return-on-Tangible-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.
Two Harbors Investment Return-on-Tangible-Asset Chart
FRA:2H2 vs LADR, ORC, ARI: Return-on-Tangible-Asset Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Asset vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.57% mean?
Two Harbors Investment (FRA:2H2) has a Return-on-Tangible-Asset of 1.57% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Two Harbors Investment and its competitors. This is 32% above median its historical median of 1.19. According to the industry distribution chart, Two Harbors Investment ranks #859 out of 939 companies in the REITs industry, placing it in the top 91.5%.
Is Two Harbors Investment's Return-on-Tangible-Asset too high?
Two Harbors Investment's current Return-on-Tangible-Asset of 1.57% is 32% above median its 10-year median of 1.19. The REITs industry median Return-on-Tangible-Asset is 3.27. Two Harbors Investment's value of 1.57% is 52% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #859 out of 939 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Two Harbors Investment has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Return-on-Tangible-Asset compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #859 out of 939 companies for Return-on-Tangible-Asset. This places Two Harbors Investment in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.27. Two Harbors Investment's value of 1.57% is 52% below this benchmark. While the company's 10-year median is 1.19 vs. the industry median of 3.27, 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 Return-on-Tangible-Asset for a REITs company?
The median Return-on-Tangible-Asset among REITs companies is 3.27, based on 939 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current Return-on-Tangible-Asset of 1.57% is 52% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median Return-on-Tangible-Asset is 3.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current Return-on-Tangible-Asset is 1.57%, which is 32% above median its own 10-year median of 1.19. 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 Return-on-Tangible-Asset of 1.57%. The current Return-on-Tangible-Asset is 1.57%, which is 32% above median its 10-year median of 1.19 and 52% below the REITs industry median of 3.27. Two Harbors Investment's overall GF Score™ is 30/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Return-on-Tangible-Asset is 1.57% 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.
30GF Score
Get the complete analysis for FRA:2H2
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:2H2 has been successfully added to your 
