ARR
ARMOUR Residential REIT, Inc.
REIT - Mortgage
Market Cap$2.16B
5Y Perf.-55.5%
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Stock Comparison
ARR vs TWO
Revenue, margins, valuation, and 5-year total return — side by side.
TWO
Two Harbors Investment Corp.
REIT - Mortgage
Market Cap$1.29B
5Y Perf.-32.2%
ARR vs TWO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ARR | TWO |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $2.16B | $1.29B |
| Revenue (TTM) | $993M | $765M |
| Net Income (TTM) | $241M | $-343M |
| Gross Margin | 95.8% | 88.0% |
| Operating Margin | 84.7% | 57.3% |
| Forward P/E | 5.7x | 11.9x |
| Total Debt | $17.94B | $8.56B |
| Cash & Equiv. | $63M | $842M |
ARR vs TWO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ARR
TWO
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| ARMOUR Residential … (ARR) | 100 | 44.5 | -55.5% |
| Two Harbors Investm… (TWO) | 100 | 67.8 | -32.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ARR vs TWO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ARR leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Two Harbors Investment Corp. is the stronger pick specifically for capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
ARR
ARMOUR Residential REIT, Inc.
The Real Estate Income Play
ARR carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.65, yield 17.3%
- Rev growth 444.1%, EPS growth 7.5%
- 444.1% FFO/revenue growth vs TWO's -28.4%
Best for: income & stability and growth exposure
TWO
Two Harbors Investment Corp.
The Real Estate Income Play
TWO is the clearest fit if your priority is long-term compounding and sleep-well-at-night.
- -5.8% 10Y total return vs ARR's -11.4%
- Lower volatility, beta 0.49, current ratio 0.13x
- Beta 0.49, yield 13.4%, current ratio 0.13x
Best for: long-term compounding and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARR | 444.1% FFO/revenue growth vs TWO's -28.4% |
| Value | ARR | Lower P/E (5.7x vs 11.9x) |
| Quality / Margins | ARR | 24.2% margin vs TWO's -44.8% |
| Stability / Safety | TWO | Beta 0.49 vs ARR's 0.65, lower leverage |
| Dividends | ARR | 17.3% yield, 1-year raise streak, vs TWO's 13.4% |
| Momentum (1Y) | ARR | +26.1% vs TWO's +18.1% |
| Efficiency (ROA) | ARR | 1.2% ROA vs TWO's -3.0%, ROIC 6.8% vs 3.1% |
ARR vs TWO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARRLAGGINGTWO
TWOTwo Harbors Investmen…
1leads
ARRARMOUR Residential RE…
3leads
6 Total Categories
CATEGORYLEADERvs TWOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARR4/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARR6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
TWO5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
ARR2/2
Income & Cash Flow (Last 12 Months)
ARR leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARR and TWO operate at a comparable scale, with $993M and $765M in trailing revenue. ARR is the more profitable business, keeping 24.2% of every revenue dollar as net income compared to TWO's -44.8%. On growth, TWO holds the edge at +3.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| RevenueTrailing 12 months | $993M | $765M |
| EBITDAEarnings before interest/tax | $758M | $70M |
| Net IncomeAfter-tax profit | $241M | -$343M |
| Free Cash FlowCash after capex | $134M | -$66M |
| Gross MarginGross profit ÷ Revenue | +95.8% | +88.0% |
| Operating MarginEBIT ÷ Revenue | +84.7% | +57.3% |
| Net MarginNet income ÷ Revenue | +24.2% | -44.8% |
| FCF MarginFCF ÷ Revenue | +13.5% | -8.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -84.8% | +3.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.5% | +120.2% |
ARR leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
Evenly matched — ARR and TWO each lead in 3 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, ARR's 20.8x EV/EBITDA is more attractive than TWO's 197.8x.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| Market CapShares × price | $2.2B | $1.3B |
| Enterprise ValueMkt cap + debt − cash | $20.0B | $9.0B |
| Trailing P/EPrice ÷ TTM EPS | 5.28x | -2.81x |
| Forward P/EPrice ÷ next-FY EPS est. | 5.67x | 11.85x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 20.77x | 197.77x |
| Price / SalesMarket cap ÷ Revenue | 1.66x | 2.12x |
| Price / BookPrice ÷ Book value/share | 0.73x | 0.71x |
| Price / FCFMarket cap ÷ FCF | 17.41x | 14.47x |
Evenly matched — ARR and TWO each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
ARR leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
ARR delivers a 11.5% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $-19 for TWO. TWO carries lower financial leverage with a 4.79x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARR's 7.94x. On the Piotroski fundamental quality scale (0–9), ARR scores 7/9 vs TWO's 3/9, reflecting strong financial health.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| ROE (TTM)Return on equity | +11.5% | -19.1% |
| ROA (TTM)Return on assets | +1.2% | -3.0% |
| ROICReturn on invested capital | +6.8% | +3.1% |
| ROCEReturn on capital employed | +31.5% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 3 |
| Debt / EquityFinancial leverage | 7.94x | 4.79x |
| Net DebtTotal debt minus cash | $17.9B | $7.7B |
| Cash & Equiv.Liquid assets | $63M | $842M |
| Total DebtShort + long-term debt | $17.9B | $8.6B |
| Interest CoverageEBIT ÷ Interest expense | 1.50x | 0.09x |
ARR leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
TWO leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TWO five years ago would be worth $8,214 today (with dividends reinvested), compared to $6,392 for ARR. Over the past 12 months, ARR leads with a +26.1% total return vs TWO's +18.1%. The 3-year compound annual growth rate (CAGR) favors TWO at 13.4% vs ARR's 2.0% — a key indicator of consistent wealth creation.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| YTD ReturnYear-to-date | +1.7% | +22.2% |
| 1-Year ReturnPast 12 months | +26.1% | +18.1% |
| 3-Year ReturnCumulative with dividends | +6.0% | +45.7% |
| 5-Year ReturnCumulative with dividends | -36.1% | -17.9% |
| 10-Year ReturnCumulative with dividends | -11.4% | -5.8% |
| CAGR (3Y)Annualised 3-year return | +2.0% | +13.4% |
TWO leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ARR and TWO each lead in 1 of 2 comparable metrics.
Risk & Volatility
TWO is the less volatile stock with a 0.49 beta — it tends to amplify market swings less than ARR's 0.65 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ARR currently trades 90.3% from its 52-week high vs TWO's 86.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.65x | 0.49x |
| 52-Week HighHighest price in past year | $19.31 | $14.17 |
| 52-Week LowLowest price in past year | $13.98 | $8.78 |
| % of 52W HighCurrent price vs 52-week peak | +90.3% | +86.5% |
| RSI (14)Momentum oscillator 0–100 | 48.9 | 71.0 |
| Avg Volume (50D)Average daily shares traded | 3.1M | 3.7M |
Evenly matched — ARR and TWO each lead in 1 of 2 comparable metrics.
Analyst Outlook
ARR leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ARR as "Hold" and TWO as "Hold". Consensus price targets imply 14.3% upside for TWO (target: $14) vs 4.7% for ARR (target: $18). For income investors, ARR offers the higher dividend yield at 17.25% vs TWO's 13.39%.
| Metric | ARRARMOUR Residentia… | TWOTwo Harbors Inves… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $18.25 | $14.00 |
| # AnalystsCovering analysts | 25 | 22 |
| Dividend YieldAnnual dividend ÷ price | +17.3% | +13.4% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $3.01 | $1.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.9% | +0.1% |
ARR leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ARR leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TWO leads in 1 (Total Returns). 2 tied.
Best OverallARMOUR Residential REIT, In… (ARR)Leads 3 of 6 categories
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ARR vs TWO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ARR or TWO a better buy right now?
For growth investors, ARMOUR Residential REIT, Inc.
(ARR) is the stronger pick with 444. 1% revenue growth year-over-year, versus -28. 4% for Two Harbors Investment Corp. (TWO). ARMOUR Residential REIT, Inc. (ARR) offers the better valuation at 5. 3x trailing P/E (5. 7x forward), making it the more compelling value choice. Analysts rate ARMOUR Residential REIT, Inc. (ARR) a "Hold" — based on 25 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.
02Which has the better valuation — ARR or TWO?
On forward P/E, ARMOUR Residential REIT, Inc.
is actually cheaper at 5. 7x.
03Which is the better long-term investment — ARR or TWO?
Over the past 5 years, Two Harbors Investment Corp.
(TWO) delivered a total return of -17. 9%, compared to -36. 1% for ARMOUR Residential REIT, Inc. (ARR). Over 10 years, the gap is even starker: TWO returned -5. 8% versus ARR's -11. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ARR or TWO?
By beta (market sensitivity over 5 years), Two Harbors Investment Corp.
(TWO) is the lower-risk stock at 0. 49β versus ARMOUR Residential REIT, Inc. 's 0. 65β — meaning ARR is approximately 32% 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 8% for ARMOUR Residential REIT, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ARR or TWO?
By revenue growth (latest reported year), ARMOUR Residential REIT, Inc.
(ARR) is pulling ahead at 444. 1% versus -28. 4% for Two Harbors Investment Corp. (TWO). On earnings-per-share growth, the picture is similar: ARMOUR Residential REIT, Inc. grew EPS 747. 1% year-over-year, compared to -284. 0% for Two Harbors Investment Corp.. 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.
06Which has better profit margins — ARR or TWO?
ARMOUR Residential REIT, Inc.
(ARR) is the more profitable company, earning 24. 7% net margin versus -75. 0% for Two Harbors Investment Corp. — meaning it keeps 24. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARR leads at 73. 9% versus 68. 7% for TWO. 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.
07Is ARR or TWO more undervalued right now?
On forward earnings alone, ARMOUR Residential REIT, Inc.
(ARR) trades at 5. 7x forward P/E versus 11. 9x for Two Harbors Investment Corp. — 6. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TWO: 14. 3% to $14. 00.
08Which pays a better dividend — ARR or TWO?
All stocks in this comparison pay dividends.
ARMOUR Residential REIT, Inc. (ARR) offers the highest yield at 17. 3%, versus 13. 4% for Two Harbors Investment Corp. (TWO).
09Is ARR or TWO better for a retirement portfolio?
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: -5. 8%, ARR: -11. 4%), 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.
10What are the main differences between ARR and TWO?
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: ARR is a small-cap high-growth stock; TWO is a small-cap income-oriented stock. 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.
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