Two Harbors InvestmentFRA:2H2 31 ROA % is 1.22% as of Mar. 2026, which is 13% above its 10-year median of 1.08. GuruFocus rates FRA:2H2 with a GF Score™ of 31/100. The stock has 6 warning signs investors should review. Among 938 REITs companies, Two Harbors Investment ranks worse than 90.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Two Harbors Investment's annualizedNet Income for the quarter that ended in Mar. 2026 was €111.7 Mil.
Two Harbors Investment's average Total Assets over the quarter that ended in Mar. 2026 was €9,192.7 Mil. Therefore, Two Harbors Investment's annualized ROA % for the quarter that ended in Mar. 2026 was 1.22%.
The historical rank and industry rank for Two Harbors Investment's ROA % or its related term are showing as below:
FRA:2H2'
s ROA % Range Over the Past 10 Years
Min: -5.88 Med: 1.08 Max: 2.35
Current: -2.91
During the past 13 years, Two Harbors Investment's highest ROA % was 2.35%. The lowest was -5.88%. And the median was 1.08%.
FRA:2H2's ROA % is ranked worse than 90.51% of 938
companies
in the REITs industry
Industry Median: 3.22
vs FRA:2H2: -2.91
Two Harbors Investment (FRA:2H2) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the REIT - Mortgage subindustry, Two Harbors Investment's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's ROA % distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Two Harbors Investment (FRA:2H2) has a ROA % of 1.22% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Two Harbors Investment and its competitors. This is 13% above median its historical median of 1.08. According to the industry distribution chart, Two Harbors Investment ranks #849 out of 938 companies in the REITs industry, placing it in the top 90.5%.
Is Two Harbors Investment's ROA % too high?
Two Harbors Investment's current ROA % of 1.22% is 13% above median its 10-year median of 1.08. The REITs industry median ROA % is 3.22. Two Harbors Investment's value of 1.22% is 62.1% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #849 out of 938 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 ROA % compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #849 out of 938 companies for ROA %. This places Two Harbors Investment in the lower half of its industry. The industry median ROA % is 3.22. Two Harbors Investment's value of 1.22% is 62.1% below this benchmark. While the company's 10-year median is 1.08 vs. the industry median of 3.22, 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.22, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current ROA % of 1.22% is 62.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median ROA % is 3.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current ROA % is 1.22%, which is 13% above median its own 10-year median of 1.08. 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 ROA % of 1.22%. The current ROA % is 1.22%, which is 13% above median its 10-year median of 1.08 and 62.1% below the REITs industry median of 3.22. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current ROA % is 1.22% 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
Get the complete analysis for FRA:2H2
ROA % 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 
