Two Harbors InvestmentSTU:2H2 -1.23%28 ROE % is 7.39% as of Mar. 2026, which is 10% above its 10-year median of 6.72. GuruFocus rates STU:2H2 with a GF Score™ of 28/100. The stock has 5 warning signs investors should review. Among 936 REITs companies, Two Harbors Investment ranks worse than 96.58% on this metric.
The historical rank and industry rank for Two Harbors Investment's ROE % or its related term are showing as below:
STU:2H2'
s ROE % Range Over the Past 10 Years
Min: -40.45 Med: 6.72 Max: 13.79
Current: -18.39
During the past 13 years, Two Harbors Investment's highest ROE % was 13.79%. The lowest was -40.45%. And the median was 6.72%.
STU:2H2's ROE % is ranked worse than 96.58% of 936
companies
in the REITs industry
Industry Median: 6.125
vs STU:2H2: -18.39
Two Harbors Investment (STU:2H2) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's ROE % distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Two Harbors Investment (STU:2H2) has a ROE % of 7.39% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Two Harbors Investment and its competitors. This is 10% above median its historical median of 6.72. According to the industry distribution chart, Two Harbors Investment ranks #904 out of 936 companies in the REITs industry, placing it in the top 96.6%.
Is Two Harbors Investment's ROE % too high?
Two Harbors Investment's current ROE % of 7.39% is 10% above median its 10-year median of 6.72. The REITs industry median ROE % is 6.13. Two Harbors Investment's value of 7.39% is 20.7% above this industry median. Based on the distribution chart, Two Harbors Investment ranks #904 out of 936 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Two Harbors Investment has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's ROE % compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #904 out of 936 companies for ROE %. This places Two Harbors Investment in the lower half of its industry. The industry median ROE % is 6.13. Two Harbors Investment's value of 7.39% is 20.7% above this benchmark. While the company's 10-year median is 6.72 vs. the industry median of 6.13, Two Harbors Investment has consistently been above 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 ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current ROE % of 7.39% is 20.7% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current ROE % is 7.39%, which is 10% above median its own 10-year median of 6.72. 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 (STU:2H2) has a current ROE % of 7.39%. The current ROE % is 7.39%, which is 10% above median its 10-year median of 6.72 and 20.7% above the REITs industry median of 6.13. Two Harbors Investment's overall GF Score™ is 28/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Two Harbors Investment (STU:2H2), the current ROE % is 7.39% 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.
28GF Score
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