Geo Group Inc (The) (NYSE: GEO) and CorEnergy Infrastructure Trust (NYSE:CORR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Risk and Volatility

Geo Group Inc (The) 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 2.15, indicating that its share price is 115% more volatile than the S&P 500.

Profitability

This table compares Geo Group Inc (The) and CorEnergy Infrastructure Trust’s 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%
CorEnergy Infrastructure Trust 38.06% 9.08% 5.18%

Insider & Institutional Ownership

95.8% of Geo Group Inc (The) shares are owned by institutional investors. Comparatively, 62.6% of CorEnergy Infrastructure Trust shares are owned by institutional investors. 2.4% of Geo Group Inc (The) shares are owned by company insiders. Comparatively, 1.0% of CorEnergy Infrastructure Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Geo Group Inc (The) and CorEnergy Infrastructure Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Geo Group Inc (The) $2.18 billion 1.48 $148.71 million $1.35 19.30
CorEnergy Infrastructure Trust $89.25 million 4.79 $29.66 million $2.30 15.62

Geo Group Inc (The) has higher revenue and earnings than CorEnergy Infrastructure Trust. CorEnergy Infrastructure Trust is trading at a lower price-to-earnings ratio than Geo Group Inc (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.2%. CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 8.4%. 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. 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 increased 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Geo Group Inc (The) and CorEnergy Infrastructure Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group Inc (The) 0 1 2 0 2.67
CorEnergy Infrastructure Trust 1 2 0 0 1.67

Geo Group Inc (The) presently has a consensus price target of $33.78, suggesting a potential upside of 29.61%. CorEnergy Infrastructure Trust has a consensus price target of $35.33, suggesting a potential downside of 1.63%. Given Geo Group Inc (The)’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Geo Group Inc (The) is more favorable than CorEnergy Infrastructure Trust.

Summary

Geo Group Inc (The) beats CorEnergy Infrastructure Trust on 9 of the 17 factors compared between the two stocks.

Geo Group Inc (The) 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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