TWO
Two Harbors Investment Corp.
REIT - Mortgage
Market Cap$1.29B
5Y Perf.-32.2%
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Stock Comparison
TWO vs DX
Revenue, margins, valuation, and 5-year total return — side by side.
DX
Dynex Capital, Inc.
REIT - Mortgage
Market Cap$2.66B
5Y Perf.+3.8%
TWO vs DX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TWO | DX |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $1.29B | $2.66B |
| Revenue (TTM) | $765M | $421M |
| Net Income (TTM) | $-343M | $319M |
| Gross Margin | 88.0% | 99.9% |
| Operating Margin | 57.3% | 107.8% |
| Forward P/E | 11.9x | 9.5x |
| Total Debt | $8.56B | $13.91B |
| Cash & Equiv. | $842M | $930M |
TWO vs DX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TWO
DX
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Two Harbors Investm… (TWO) | 100 | 67.8 | -32.2% |
| Dynex Capital, Inc. (DX) | 100 | 103.8 | +3.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TWO vs DX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: DX leads in 5 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 and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
TWO
Two Harbors Investment Corp.
The Real Estate Income Play
TWO is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.49, yield 13.4%
- Lower volatility, beta 0.49, current ratio 0.13x
- Beta 0.49, yield 13.4%, current ratio 0.13x
Best for: income & stability and sleep-well-at-night
DX
Dynex Capital, Inc.
The Real Estate Income Play
DX carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 179.5%, EPS growth 65.8%, 3Y rev CAGR 33.4%
- 61.1% 10Y total return vs TWO's -5.8%
- 179.5% FFO/revenue growth vs TWO's -28.4%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | DX | 179.5% FFO/revenue growth vs TWO's -28.4% |
| Value | DX | Lower P/E (9.5x vs 11.9x) |
| Quality / Margins | DX | 75.8% margin vs TWO's -44.8% |
| Stability / Safety | TWO | Beta 0.49 vs DX's 0.54, lower leverage |
| Dividends | TWO | 13.4% yield; the other pay no meaningful dividend |
| Momentum (1Y) | DX | +27.0% vs TWO's +18.1% |
| Efficiency (ROA) | DX | 1.8% ROA vs TWO's -3.0%, ROIC 4.8% vs 3.1% |
TWO vs DX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLDXLAGGINGTWO
TWOTwo Harbors Investmen…
0leads
DXDynex Capital, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs TWOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
DX5/6
Valuation MetricsMultiples, price ratios, and targets
DX3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
Tied
—
Total Returns1Y, 3Y, 5Y total returns with dividends
DX5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
DX leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TWO is the larger business by revenue, generating $765M annually — 1.8x DX's $421M. DX is the more profitable business, keeping 75.8% of every revenue dollar as net income compared to TWO's -44.8%.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| RevenueTrailing 12 months | $765M | $421M |
| EBITDAEarnings before interest/tax | $70M | $572M |
| Net IncomeAfter-tax profit | -$343M | $319M |
| Free Cash FlowCash after capex | -$66M | $107M |
| Gross MarginGross profit ÷ Revenue | +88.0% | +99.9% |
| Operating MarginEBIT ÷ Revenue | +57.3% | +107.8% |
| Net MarginNet income ÷ Revenue | -44.8% | +75.8% |
| FCF MarginFCF ÷ Revenue | -8.7% | +25.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.2% | +3.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +120.2% | +93.3% |
DX leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
DX leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, DX's 21.2x EV/EBITDA is more attractive than TWO's 197.8x.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| Market CapShares × price | $1.3B | $2.7B |
| Enterprise ValueMkt cap + debt − cash | $9.0B | $15.6B |
| Trailing P/EPrice ÷ TTM EPS | -2.81x | 5.40x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.85x | 9.55x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 197.77x | 21.19x |
| Price / SalesMarket cap ÷ Revenue | 2.12x | 6.34x |
| Price / BookPrice ÷ Book value/share | 0.71x | 0.68x |
| Price / FCFMarket cap ÷ FCF | 14.47x | — |
DX leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
Evenly matched — TWO and DX each lead in 4 of 8 comparable metrics.
Profitability & Efficiency
DX delivers a 13.0% return on equity — every $100 of shareholder capital generates $13 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 DX's 5.65x. On the Piotroski fundamental quality scale (0–9), DX scores 4/9 vs TWO's 3/9, reflecting mixed financial health.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| ROE (TTM)Return on equity | -19.1% | +13.0% |
| ROA (TTM)Return on assets | -3.0% | +1.8% |
| ROICReturn on invested capital | +3.1% | +4.8% |
| ROCEReturn on capital employed | +16.9% | +5.8% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 4 |
| Debt / EquityFinancial leverage | 4.79x | 5.65x |
| Net DebtTotal debt minus cash | $7.7B | $13.0B |
| Cash & Equiv.Liquid assets | $842M | $930M |
| Total DebtShort + long-term debt | $8.6B | $13.9B |
| Interest CoverageEBIT ÷ Interest expense | 0.09x | — |
Evenly matched — TWO and DX each lead in 4 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
DX leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in DX five years ago would be worth $10,792 today (with dividends reinvested), compared to $8,214 for TWO. Over the past 12 months, DX leads with a +27.0% total return vs TWO's +18.1%. The 3-year compound annual growth rate (CAGR) favors DX at 19.2% vs TWO's 13.4% — a key indicator of consistent wealth creation.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| YTD ReturnYear-to-date | +22.2% | +0.9% |
| 1-Year ReturnPast 12 months | +18.1% | +27.0% |
| 3-Year ReturnCumulative with dividends | +45.7% | +69.3% |
| 5-Year ReturnCumulative with dividends | -17.9% | +7.9% |
| 10-Year ReturnCumulative with dividends | -5.8% | +61.1% |
| CAGR (3Y)Annualised 3-year return | +13.4% | +19.2% |
DX leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — TWO and DX 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 DX's 0.54 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.49x | 0.54x |
| 52-Week HighHighest price in past year | $14.17 | $14.93 |
| 52-Week LowLowest price in past year | $8.78 | $11.70 |
| % of 52W HighCurrent price vs 52-week peak | +86.5% | +89.4% |
| RSI (14)Momentum oscillator 0–100 | 71.0 | 48.4 |
| Avg Volume (50D)Average daily shares traded | 3.7M | 5.7M |
Evenly matched — TWO and DX each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates TWO as "Hold" and DX as "Hold". Consensus price targets imply 26.1% upside for DX (target: $17) vs 14.3% for TWO (target: $14). TWO is the only dividend payer here at 13.39% yield — a key consideration for income-focused portfolios.
| Metric | TWOTwo Harbors Inves… | DXDynex Capital, In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $14.00 | $16.83 |
| # AnalystsCovering analysts | 22 | 14 |
| Dividend YieldAnnual dividend ÷ price | +13.4% | — |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.64 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
DX leads in 3 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 2 categories are tied.
Best OverallDynex Capital, Inc. (DX)Leads 3 of 6 categories
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TWO vs DX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TWO or DX a better buy right now?
For growth investors, Dynex Capital, Inc.
(DX) is the stronger pick with 179. 5% revenue growth year-over-year, versus -28. 4% for Two Harbors Investment Corp. (TWO). Dynex Capital, Inc. (DX) offers the better valuation at 5. 4x trailing P/E (9. 5x forward), making it the more compelling value choice. 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.
02Which has the better valuation — TWO or DX?
On forward P/E, Dynex Capital, Inc.
is actually cheaper at 9. 5x.
03Which is the better long-term investment — TWO or DX?
Over the past 5 years, Dynex Capital, Inc.
(DX) delivered a total return of +7. 9%, compared to -17. 9% for Two Harbors Investment Corp. (TWO). Over 10 years, the gap is even starker: DX returned +61. 1% versus TWO's -5. 8%. 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 — TWO or DX?
By beta (market sensitivity over 5 years), Two Harbors Investment Corp.
(TWO) is the lower-risk stock at 0. 49β versus Dynex Capital, Inc. 's 0. 54β — meaning DX is approximately 10% 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 6% for Dynex Capital, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TWO or DX?
By revenue growth (latest reported year), Dynex Capital, Inc.
(DX) is pulling ahead at 179. 5% versus -28. 4% for Two Harbors Investment Corp. (TWO). On earnings-per-share growth, the picture is similar: Dynex Capital, Inc. grew EPS 65. 8% 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.
06Which has better profit margins — TWO or DX?
Dynex Capital, Inc.
(DX) is the more profitable company, earning 75. 9% net margin versus -75. 0% for Two Harbors Investment Corp. — meaning it keeps 75. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DX leads at 175. 6% versus 68. 7% for TWO. At the gross margin level — before operating expenses — DX leads at 100. 0%, 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 TWO or DX more undervalued right now?
On forward earnings alone, Dynex Capital, Inc.
(DX) trades at 9. 5x forward P/E versus 11. 9x for Two Harbors Investment Corp. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DX: 26. 1% to $16. 83.
08Which pays a better dividend — TWO or DX?
In this comparison, TWO (13.
4% yield) pays a dividend. DX does not pay a meaningful dividend and should not be held primarily for income.
09Is TWO or DX 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%, DX: +61. 1%), 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 TWO and DX?
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: TWO is a small-cap income-oriented stock; DX is a small-cap high-growth stock. TWO pays a dividend while DX 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.
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