Critical Review: Sino Land (OTCMKTS:SNLAY) vs. Two Harbors Investment (NYSE:TWO)

Sino Land (OTCMKTS:SNLAY) and Two Harbors Investment (NYSE:TWO) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

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

Dividends

Sino Land pays an annual dividend of $0.51 per share and has a dividend yield of 10.6%. Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 15.3%. Two Harbors Investment pays out -37.3% of its earnings in the form of a dividend.

Risk and Volatility

Sino Land has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sino Land and Two Harbors Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sino Land	$1.12 billion	7.75	$562.96 million	N/A	N/A
Two Harbors Investment	-$255.29 million	-4.77	-$106.37 million	($4.82)	-2.44

Sino Land has higher revenue and earnings than Two Harbors Investment.

Profitability

This table compares Sino Land and Two Harbors Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sino Land	N/A	N/A	N/A
Two Harbors Investment	-87.84%	4.45%	0.55%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sino Land and Two Harbors Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sino Land	0	0	0	0	0.00
Two Harbors Investment	0	3	4	0	2.57

Two Harbors Investment has a consensus price target of $13.71, suggesting a potential upside of 16.77%. Given Two Harbors Investment’s stronger consensus rating and higher probable upside, analysts clearly believe Two Harbors Investment is more favorable than Sino Land.

Summary

Two Harbors Investment beats Sino Land on 10 of the 14 factors compared between the two stocks.

About Sino Land

Sino Land Company Limited, an investment holding company, invests in, develops, manages, and trades in properties. It operates through six segments: Property Sales, Property Rental, Property Management and Other Services, Hotel Operations, Investments in Securities, and Financing. The company's property portfolio includes shopping malls, offices, industrial buildings, residentials and car parks. In addition, it provides cleaning, building construction and management, financing, administration, security, mortgage loan financing, secretarial, management, project management, securities investment, consultancy, and deposit placing services, as well as operates hotels. Further, the company engages in real estate agency and trustee related services. The company operates approximately 19.5 million square feet of attributable floor area in Mainland China, Hong Kong, Singapore, and Sydney. Sino Land Company Limited was incorporated in 1971 and is based in Tsim Sha Tsui, Hong Kong. The company is a subsidiary of Tsim Sha Tsui Properties Limited.

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.