Federal Realty Investment Trust (FRT) and Corecivic (CXW) Financial Analysis
Federal Realty Investment Trust (NYSE:FRT) and Corecivic (NYSE:CXW) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Institutional and Insider Ownership
91.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 84.1% of Corecivic shares are held by institutional investors. 1.1% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 1.3% of Corecivic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Federal Realty Investment Trust and Corecivic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Realty Investment Trust||0||2||12||0||2.86|
Federal Realty Investment Trust currently has a consensus price target of $137.54, indicating a potential upside of 10.68%. Corecivic has a consensus price target of $35.00, indicating a potential upside of 45.53%. Given Corecivic’s stronger consensus rating and higher possible upside, analysts plainly believe Corecivic is more favorable than Federal Realty Investment Trust.
Earnings and Valuation
This table compares Federal Realty Investment Trust and Corecivic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federal Realty Investment Trust||$857.35 million||10.65||$289.91 million||$5.91||21.03|
|Corecivic||$1.77 billion||1.62||$178.04 million||$2.32||10.37|
Federal Realty Investment Trust has higher earnings, but lower revenue than Corecivic. Corecivic is trading at a lower price-to-earnings ratio than Federal Realty Investment Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Federal Realty Investment Trust has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Corecivic has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This table compares Federal Realty Investment Trust and Corecivic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Realty Investment Trust||31.64%||12.76%||4.50%|
Federal Realty Investment Trust pays an annual dividend of $4.08 per share and has a dividend yield of 3.3%. Corecivic pays an annual dividend of $1.72 per share and has a dividend yield of 7.2%. Federal Realty Investment Trust pays out 69.0% of its earnings in the form of a dividend. Corecivic pays out 74.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Federal Realty Investment Trust has raised its dividend for 50 consecutive years.
Federal Realty Investment Trust beats Corecivic on 10 of the 17 factors compared between the two stocks.
About Federal Realty Investment Trust
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 105 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 51 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.
The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust (REIT) and the nation's largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by government agencies. The Company has been a flexible and dependable partner for government for more than 30 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
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