Geo Group Inc (The) (NYSE: GEO) is one of 15 publicly-traded companies in the “Specialized REITs” industry, but how does it weigh in compared to its peers? We will compare Geo Group Inc (The) to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Institutional & Insider Ownership

95.8% of Geo Group Inc (The) shares are held by institutional investors. Comparatively, 69.8% of shares of all “Specialized REITs” companies are held by institutional investors. 2.4% of Geo Group Inc (The) shares are held by insiders. Comparatively, 6.7% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Geo Group Inc (The) and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group Inc (The) 0 1 2 0 2.67
Geo Group Inc (The) Competitors 31 242 638 23 2.70

Geo Group Inc (The) currently has a consensus target price of $33.78, suggesting a potential upside of 29.61%. As a group, “Specialized REITs” companies have a potential upside of 14.93%. Given Geo Group Inc (The)’s higher possible upside, equities analysts clearly believe Geo Group Inc (The) is more favorable than its peers.

Earnings and Valuation

This table compares Geo Group Inc (The) and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Geo Group Inc (The) $2.18 billion $148.71 million 19.30
Geo Group Inc (The) Competitors $957.09 million $112.54 million 79.11

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

Profitability

This table compares Geo Group Inc (The) and its peers’ 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 24.55% 7.21% 2.52%

Dividends

Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.2%. Geo Group Inc (The) 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. As a group, “Specialized REITs” companies pay a dividend yield of 4.4% and pay out 198.3% of their earnings in the form of a dividend. Geo Group Inc (The) has increased its dividend for 4 consecutive years. Geo Group Inc (The) is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

Geo Group Inc (The) has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Geo Group Inc (The)’s peers have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Summary

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

About Geo Group Inc (The)

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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