Corecivic (NYSE: CXW) and The GEO Group (NYSE:GEO) are both mid-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Earnings & Valuation
This table compares Corecivic and The GEO Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Corecivic||$1.85 billion||1.43||$219.91 million||$1.67||13.37|
|The GEO Group||$2.18 billion||1.29||$148.71 million||$1.36||16.69|
Institutional and Insider Ownership
83.2% of Corecivic shares are held by institutional investors. Comparatively, 95.6% of The GEO Group shares are held by institutional investors. 1.3% of Corecivic shares are held by company insiders. Comparatively, 2.4% of The GEO Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Corecivic has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, The GEO Group has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
This table compares Corecivic and The GEO Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||7.05%||14.85%||4.17%|
Corecivic pays an annual dividend of $1.68 per share and has a dividend yield of 7.5%. The GEO Group pays an annual dividend of $1.88 per share and has a dividend yield of 8.3%. Corecivic pays out 100.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The GEO Group 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. Corecivic has increased its dividend for 5 consecutive years.
This is a summary of current recommendations and price targets for Corecivic and The GEO Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||1||2||0||2.67|
Corecivic presently has a consensus price target of $36.00, suggesting a potential upside of 61.29%. The GEO Group has a consensus price target of $33.78, suggesting a potential upside of 48.80%. Given Corecivic’s stronger consensus rating and higher possible upside, analysts clearly believe Corecivic is more favorable than The GEO Group.
Corecivic beats The GEO Group on 10 of the 17 factors compared between the two stocks.
Corecivic Company Profile
CoreCivic, Inc., formerly Corrections Corporation of America, is a diversified government solutions company. The Company provides partnership correctional, detention and residential reentry facilities and operates prison in the United States. The Company’s business offerings include CoreCivic Safety, CoreCivic Properties, and CoreCivic Community. The Company provides a range of solutions to government partners that serve the public good corrections and detention management, government real estate solutions, and network of residential reentry centers. As of March 31, 2017, the Company owned or controlled 48 correctional and detention facilities, owned or controlled 27 residential reentry centers, and managed an additional 11 correctional and detention facilities owned by its government partners, with a total design capacity of approximately 88,400 beds in 20 states.
The GEO Group 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.
Receive News & Ratings for Corecivic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Corecivic and related companies with MarketBeat.com's FREE daily email newsletter.