The GEO Group (NYSE: GEO) and CorEnergy Infrastructure Trust (NYSE:CORR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.
Insider & Institutional Ownership
95.8% of The GEO Group shares are owned by institutional investors. Comparatively, 62.1% of CorEnergy Infrastructure Trust shares are owned by institutional investors. 2.4% of The GEO Group shares are owned by insiders. Comparatively, 1.0% of CorEnergy Infrastructure Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares The GEO Group and CorEnergy Infrastructure Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The GEO Group||$2.18 billion||1.40||$148.71 million||$1.35||18.26|
|CorEnergy Infrastructure Trust||$89.25 million||4.80||$29.66 million||$2.30||15.64|
The GEO Group has higher revenue and earnings than CorEnergy Infrastructure Trust. CorEnergy Infrastructure Trust is trading at a lower price-to-earnings ratio than The GEO Group, indicating that it is currently the more affordable of the two stocks.
This table compares The GEO Group and CorEnergy Infrastructure Trust’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%|
|CorEnergy Infrastructure Trust||38.06%||9.08%||5.18%|
This is a summary of recent ratings for The GEO Group and CorEnergy Infrastructure Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||1||2||0||2.67|
|CorEnergy Infrastructure Trust||1||2||0||0||1.67|
The GEO Group currently has a consensus price target of $33.78, indicating a potential upside of 37.03%. CorEnergy Infrastructure Trust has a consensus price target of $35.33, indicating a potential downside of 1.77%. Given The GEO Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe The GEO Group is more favorable than CorEnergy Infrastructure Trust.
Volatility & Risk
The GEO Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, CorEnergy Infrastructure Trust has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.
The GEO Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.6%. CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 8.3%. The GEO Group pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CorEnergy Infrastructure Trust pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CorEnergy Infrastructure Trust has raised its dividend for 4 consecutive years. CorEnergy Infrastructure Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
The GEO Group beats CorEnergy Infrastructure Trust on 9 of the 17 factors compared between the two stocks.
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.
CorEnergy Infrastructure Trust Company Profile
CorEnergy Infrastructure Trust, Inc. (CorEnergy) is focused on acquiring and financing midstream and downstream real estate assets within the United States energy infrastructure sector and concurrently entering into long-term triple-net participating leases with energy companies. The Company also provides other types of capital, including loans secured by energy infrastructure assets. The Company owns assets, such as pipelines, storage terminals, and transmission and distribution assets. It assets include Grand Isle Gathering System, Pinedale Liquids Gathering System (Pinedale LGS), Portland Terminal Facility, MoGas Pipeline System and Omega Pipeline.
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