Contrasting CBL & Associates Properties (OTCMKTS:CBLAQ) and Two Harbors Investment (NYSE:TWO)

CBL & Associates Properties (OTCMKTS:CBLAQ) and Two Harbors Investment (NYSE:TWO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares CBL & Associates Properties and Two Harbors Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CBL & Associates Properties	6.19%	10.34%	1.38%
Two Harbors Investment	66.24%	6.52%	0.81%

Institutional and Insider Ownership

64.2% of Two Harbors Investment shares are owned by institutional investors. 20.1% of CBL & Associates Properties shares are owned by insiders. Comparatively, 0.6% of Two Harbors Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CBL & Associates Properties and Two Harbors Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBL & Associates Properties	0	0	0	0	0.00
Two Harbors Investment	0	3	4	0	2.57

Two Harbors Investment has a consensus price target of $13.96, suggesting a potential upside of 0.68%. Given Two Harbors Investment’s stronger consensus rating and higher probable upside, analysts plainly believe Two Harbors Investment is more favorable than CBL & Associates Properties.

Earnings and Valuation

This table compares CBL & Associates Properties and Two Harbors Investment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBL & Associates Properties	$535.29 million	N/A	$6.55 million	N/A	N/A
Two Harbors Investment	$510.75 million	2.82	$298.17 million	$2.11	6.57

Two Harbors Investment has lower revenue, but higher earnings than CBL & Associates Properties.

Summary

Two Harbors Investment beats CBL & Associates Properties on 6 of the 10 factors compared between the two stocks.

About CBL & Associates Properties

CBL & Associates Properties, Inc. is a real estate investment trust, which owns and operates retail properties. The firm engages in owning, developing, acquiring, leasing, managing and operating regional shopping malls, open-air centers, community centers and office properties. It operates through Malls and All Other segments. Its properties include Malls, Associated Centers, Community Centers, Office Buildings, Construction Properties and Mortgages. The company was founded on July 13, 1993 and is headquartered in Chattanooga, TN.

About Two Harbors Investment

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. It 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 St. Louis Park, Minnesota.