Head to Head Review: CoreCivic (CXW) & The Competition

CoreCivic (NYSE:CXW) is one of 354 public companies in the “Commercial Services & Supplies” industry, but how does it contrast to its competitors? We will compare CoreCivic to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares CoreCivic and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CoreCivic	$2.21 billion	$116.50 million	24.24
CoreCivic Competitors	$2.44 billion	$140.58 million	14.79

CoreCivic’s competitors have higher revenue and earnings than CoreCivic. CoreCivic is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

CoreCivic has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, CoreCivic’s competitors have a beta of 2.55, suggesting that their average share price is 155% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CoreCivic and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCivic	0	1	4	0	2.80
CoreCivic Competitors	1899	6239	9019	663	2.47

CoreCivic presently has a consensus price target of $39.40, suggesting a potential upside of 30.03%. As a group, “Commercial Services & Supplies” companies have a potential upside of 9.30%. Given CoreCivic’s stronger consensus rating and higher possible upside, research analysts plainly believe CoreCivic is more favorable than its competitors.

Profitability

This table compares CoreCivic and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreCivic	5.15%	9.22%	3.99%
CoreCivic Competitors	-67.40%	-119.18%	-1.34%

Institutional & Insider Ownership

85.1% of CoreCivic shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 1.8% of CoreCivic shares are held by insiders. Comparatively, 17.0% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

CoreCivic beats its competitors on 8 of the 13 factors compared.

About CoreCivic

CoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. Its correctional, detention, and residential reentry facilities offer rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. The company owns and operates correctional and detention facilities, residential reentry centers, and properties for lease. CoreCivic, Inc. was founded in 1983 and is based in Brentwood, Tennessee.