Rithm Capital Corp. (RITM)vsTwo Harbors Investments Corp (TWO)
RITM
Rithm Capital Corp.
$9.23
-2.33%
REAL ESTATE · Cap: $5.18B
TWO
Two Harbors Investments Corp
$12.18
0.00%
REAL ESTATE · Cap: $1.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 632% more annual revenue ($4.69B vs $640.21M). RITM leads profitability with a 10.6% profit margin vs -3.4%. RITM earns a higher WallStSmart Score of 67/100 (B-).
RITM
Strong Buy67
out of 100
Grade: B-
TWO
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.4%
Fair Value
$68.49
Current Price
$9.23
$59.26 discount
Intrinsic value data unavailable for TWO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 39.5%
Revenue surging 39.4% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 48.1%
Revenue surging 620.0% year-over-year
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
ROE of -19.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : RITM
The strongest argument for RITM centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 39.4% demonstrates continued momentum.
Bull Case : TWO
The strongest argument for TWO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 620.0% demonstrates continued momentum.
Bear Case : RITM
The primary concerns for RITM are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.90 is elevated, increasing financial risk.
Bear Case : TWO
The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.79 is elevated, increasing financial risk.
Key Dynamics to Monitor
RITM profiles as a growth stock while TWO is a hypergrowth play — different risk/reward profiles.
RITM carries more volatility with a beta of 1.16 — expect wider price swings.
TWO is growing revenue faster at 620.0% — sustainability is the question.
TWO generates stronger free cash flow (191M), providing more financial flexibility.
Bottom Line
RITM scores higher overall (67/100 vs 53/100) and 39.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
Two Harbors Investments Corp
REAL ESTATE · REIT - MORTGAGE · USA
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.
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