Geo Group (GEO) vs. QTS Realty Trust (QTS) Head to Head Review
Geo Group (NYSE: GEO) and QTS Realty Trust (NYSE:QTS) are both mid-cap financials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This is a breakdown of current ratings and recommmendations for Geo Group and QTS Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||0||4||9||0||2.69|
Geo Group currently has a consensus price target of $33.78, suggesting a potential upside of 29.91%. QTS Realty Trust has a consensus price target of $58.46, suggesting a potential downside of 0.79%. Given Geo Group’s higher probable upside, research analysts plainly believe Geo Group is more favorable than QTS Realty Trust.
Insider and Institutional Ownership
95.8% of Geo Group shares are owned by institutional investors. Comparatively, 99.2% of QTS Realty Trust shares are owned by institutional investors. 2.4% of Geo Group shares are owned by insiders. Comparatively, 17.3% of QTS Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Geo Group and QTS Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Geo Group||$2.18 billion||1.48||$148.71 million||$1.36||19.12|
|QTS Realty Trust||$402.36 million||7.37||$21.52 million||$0.41||143.74|
Geo Group has higher revenue and earnings than QTS Realty Trust. Geo Group is trading at a lower price-to-earnings ratio than QTS Realty Trust, indicating that it is currently the more affordable of the two stocks.
Geo Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.2%. QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.6%. 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. QTS Realty Trust pays out 380.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Geo Group has increased its dividend for 4 consecutive years and QTS Realty Trust has increased its dividend for 2 consecutive years. Geo Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Geo Group has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, QTS Realty Trust has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
This table compares Geo Group and QTS Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||4.67%||2.10%||0.93%|
Geo Group beats QTS Realty Trust on 11 of the 17 factors compared between the two stocks.
About Geo Group
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.
About QTS Realty Trust
QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.
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