The GEO Group (NYSE: GEO) is one of 15 public companies in the “Specialized REITs” industry, but how does it contrast to its rivals? We will compare The GEO Group to related businesses based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.
This table compares The GEO Group and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||7.05%||14.85%||4.17%|
|The GEO Group Competitors||25.87%||7.30%||2.55%|
The GEO Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.6%. The GEO Group 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 4.5% and pay out 255.4% of their earnings in the form of a dividend. The GEO Group has increased its dividend for 4 consecutive years. The GEO Group is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Risk and Volatility
The GEO Group has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, The GEO Group’s rivals have a beta of 0.86, meaning that their average stock price is 14% less volatile than the S&P 500.
Insider & Institutional Ownership
95.8% of The GEO Group shares are owned by institutional investors. Comparatively, 65.7% of shares of all “Specialized REITs” companies are owned by institutional investors. 2.4% of The GEO Group shares are owned by insiders. Comparatively, 6.3% of shares of all “Specialized REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares The GEO Group and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|The GEO Group||$2.18 billion||$148.71 million||18.26|
|The GEO Group Competitors||$957.09 million||$112.54 million||94.07|
The GEO Group has higher revenue and earnings than its rivals. The GEO Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and price targets for The GEO Group and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||1||2||0||2.67|
|The GEO Group Competitors||31||247||644||23||2.70|
The GEO Group currently has a consensus target price of $33.78, suggesting a potential upside of 37.03%. As a group, “Specialized REITs” companies have a potential upside of 17.27%. Given The GEO Group’s higher probable upside, analysts plainly believe The GEO Group is more favorable than its rivals.
The GEO Group beats its rivals on 9 of the 15 factors compared.
The GEO Group 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.
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