CoreCivic (NYSE:CXW – Get Free Report) and Rollins (NYSE:ROL – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares CoreCivic and Rollins”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoreCivic | $2.21 billion | 1.47 | $116.50 million | $1.25 | 26.35 |
| Rollins | $3.92 billion | 3.92 | $526.71 million | $1.10 | 29.05 |
Analyst Ratings
This is a summary of recent recommendations and price targets for CoreCivic and Rollins, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoreCivic | 0 | 0 | 4 | 0 | 3.00 |
| Rollins | 4 | 10 | 4 | 1 | 2.11 |
CoreCivic presently has a consensus target price of $39.40, suggesting a potential upside of 19.63%. Rollins has a consensus target price of $45.94, suggesting a potential upside of 43.79%. Given Rollins’ higher possible upside, analysts clearly believe Rollins is more favorable than CoreCivic.
Insider & Institutional Ownership
85.1% of CoreCivic shares are owned by institutional investors. Comparatively, 51.8% of Rollins shares are owned by institutional investors. 1.8% of CoreCivic shares are owned by company insiders. Comparatively, 5.8% of Rollins shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
CoreCivic has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Rollins has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
Profitability
This table compares CoreCivic and Rollins’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoreCivic | 5.15% | 9.22% | 3.99% |
| Rollins | 13.55% | 38.81% | 17.24% |
Summary
Rollins beats CoreCivic on 11 of the 14 factors compared between the two stocks.
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.
About Rollins
Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.
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