Healthcare Trust of America (NYSE:HTA – Get Rating) and Two Harbors Investment (NYSE:TWO – Get Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Healthcare Trust of America and Two Harbors Investment's top-line revenue, earnings per share and valuation.

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Two Harbors Investment has lower revenue, but higher earnings than Healthcare Trust of America. Healthcare Trust of America is trading at a lower price-to-earnings ratio than Two Harbors Investment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Healthcare Trust of America and Two Harbors Investment, as provided by MarketBeat.

Healthcare Trust of America presently has a consensus price target of $32.75, suggesting a potential upside of ∞. Two Harbors Investment has a consensus price target of $5.65, suggesting a potential upside of 11.00%. Given Healthcare Trust of America's higher possible upside, research analysts plainly believe Healthcare Trust of America is more favorable than Two Harbors Investment.

Profitability

This table compares Healthcare Trust of America and Two Harbors Investment's net margins, return on equity and return on assets.

Insider & Institutional Ownership

68.7% of Two Harbors Investment shares are held by institutional investors. 1.0% of Healthcare Trust of America shares are held by insiders. Comparatively, 0.4% of Two Harbors Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Healthcare Trust of America pays an annual dividend of $1.33 per share. Two Harbors Investment pays an annual dividend of $0.68 per share and has a dividend yield of 13.4%. Healthcare Trust of America pays out 316.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Two Harbors Investment pays out 113.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Two Harbors Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Healthcare Trust of America has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Summary

Two Harbors Investment beats Healthcare Trust of America on 10 of the 14 factors compared between the two stocks.

About Healthcare Trust of America

(Get Rating)

Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level. Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have outperformed the US REIT index.

About Two Harbors Investment

(Get Rating)

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. The company qualifies as a REIT for federal income tax purposes. As a REIT, the company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in Minnetonka, Minnesota.

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