Critical Analysis: Montrose Environmental Group (NYSE:ONT) & CoreCivic (NYSE:CXW)

Montrose Environmental Group (NYSE:ONT – Get Free Report) and CoreCivic (NYSE:CXW – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

87.9% of Montrose Environmental Group shares are held by institutional investors. Comparatively, 85.1% of CoreCivic shares are held by institutional investors. 10.4% of Montrose Environmental Group shares are held by company insiders. Comparatively, 1.8% of CoreCivic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Montrose Environmental Group and CoreCivic”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Montrose Environmental Group $830.54 million 0.71 -$840,000.00 ($0.33) -51.18
CoreCivic $2.21 billion 1.53 $116.50 million $1.25 27.45

CoreCivic has higher revenue and earnings than Montrose Environmental Group. Montrose Environmental Group is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Montrose Environmental Group and CoreCivic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Montrose Environmental Group 2 3 1 0 1.83
CoreCivic 0 0 4 0 3.00

Montrose Environmental Group presently has a consensus price target of $19.50, indicating a potential upside of 15.45%. CoreCivic has a consensus price target of $39.40, indicating a potential upside of 14.83%. Given Montrose Environmental Group’s higher probable upside, equities analysts plainly believe Montrose Environmental Group is more favorable than CoreCivic.

Profitability

This table compares Montrose Environmental Group and CoreCivic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Montrose Environmental Group -1.44% 4.11% 1.89%
CoreCivic 5.15% 9.22% 3.99%

Volatility and Risk

Montrose Environmental Group has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, CoreCivic has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

CoreCivic beats Montrose Environmental Group on 10 of the 14 factors compared between the two stocks.

About Montrose Environmental Group

(Get Free Report)

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.

About CoreCivic

(Get Free Report)

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.

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