Comparing Geo Group Inc (The) (GEO) and Its Peers

Geo Group Inc (The) (NYSE: GEO) is one of 15 public companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare Geo Group Inc (The) to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Valuation & Earnings

This table compares Geo Group Inc (The) and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Geo Group Inc (The) $2.18 billion $148.71 million 18.44
Geo Group Inc (The) Competitors $957.09 million $112.54 million 96.47

Geo Group Inc (The) has higher revenue and earnings than its competitors. Geo Group Inc (The) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Geo Group Inc (The) has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Geo Group Inc (The)’s competitors have a beta of 0.87, meaning that their average share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Geo Group Inc (The) and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group Inc (The) 0 2 2 0 2.50
Geo Group Inc (The) Competitors 29 241 636 23 2.70

Geo Group Inc (The) presently has a consensus target price of $33.78, suggesting a potential upside of 34.68%. As a group, “Specialized REITs” companies have a potential upside of 13.62%. Given Geo Group Inc (The)’s higher possible upside, analysts clearly believe Geo Group Inc (The) is more favorable than its competitors.

Profitability

This table compares Geo Group Inc (The) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geo Group Inc (The) 7.05% 14.85% 4.17%
Geo Group Inc (The) Competitors 25.52% 7.22% 2.53%

Institutional & Insider Ownership

96.4% of Geo Group Inc (The) shares are owned by institutional investors. Comparatively, 66.9% of shares of all “Specialized REITs” companies are owned by institutional investors. 2.4% of Geo Group Inc (The) shares are owned by company insiders. Comparatively, 5.9% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.5%. Geo Group Inc (The) pays out 138.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.4% and pay out 255.4% of their earnings in the form of a dividend. Geo Group Inc (The) has raised its dividend for 4 consecutive years. Geo Group Inc (The) is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Geo Group Inc (The) beats its competitors on 9 of the 15 factors compared.

Geo Group Inc (The) Company Profile

The GEO Group, Inc. is a real estate investment trust (REIT) specializing in the ownership, leasing and management of correctional, detention and re-entry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa, the United Kingdom and Canada. As of December 31, 2013, its worldwide operations included the management and/or ownership of approximately 77,000 beds at 98 correctional, detention and community based facilities, including idle faclities and projects under development, and also included the provision of monitoring of more than 70,000 offenders in a community-based environment on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states. The Company operates in four segments: United States Corrections and Detention segment, segment; International Services segment and Facility Construction and Design segment.

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