CHMI vs TWO

For growth investors, Cherry Hill Mortgage Investment Corporation (CHMI) is the stronger pick with 204.

8% revenue growth year-over-year, versus -28. 4% for Two Harbors Investment Corp. (TWO). Analysts rate Two Harbors Investment Corp. (TWO) a "Hold" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Two Harbors Investment Corp.

(TWO) delivered a total return of -17. 9%, compared to -36. 9% for Cherry Hill Mortgage Investment Corporation (CHMI). Over 10 years, the gap is even starker: CHMI returned +5. 0% versus TWO's -6. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Two Harbors Investment Corp.

(TWO) is the lower-risk stock at 0. 49β versus Cherry Hill Mortgage Investment Corporation's 0. 75β — meaning CHMI is approximately 52% more volatile than TWO relative to the S&P 500. On balance sheet safety, Two Harbors Investment Corp. (TWO) carries a lower debt/equity ratio of 5% versus 5% for Cherry Hill Mortgage Investment Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cherry Hill Mortgage Investment Corporation (CHMI) is pulling ahead at 204.

8% versus -28. 4% for Two Harbors Investment Corp. (TWO). On earnings-per-share growth, the picture is similar: Cherry Hill Mortgage Investment Corporation grew EPS -246. 4% year-over-year, compared to -284. 0% for Two Harbors Investment Corp.. Over a 3-year CAGR, TWO leads at 263. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cherry Hill Mortgage Investment Corporation (CHMI) is the more profitable company, earning 6.

5% net margin versus -75. 0% for Two Harbors Investment Corp. — meaning it keeps 6. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TWO leads at 68. 7% versus 55. 9% for CHMI. At the gross margin level — before operating expenses — TWO leads at 97. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, TWO (13.

4% yield) pays a dividend. CHMI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Two Harbors Investment Corp.

(TWO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 49), 13. 4% yield). Both have compounded well over 10 years (TWO: -6. 6%, CHMI: +5. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CHMI is a small-cap high-growth stock; TWO is a small-cap income-oriented stock. TWO pays a dividend while CHMI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.