Critical Contrast: Perma-Fix Environmental Services (NASDAQ:PESI) & Geo Group (NYSE:GEO)

Geo Group (NYSE:GEOGet Free Report) and Perma-Fix Environmental Services (NASDAQ:PESIGet Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Geo Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Perma-Fix Environmental Services has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Geo Group and Perma-Fix Environmental Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group 0 1 4 1 3.00
Perma-Fix Environmental Services 1 0 0 0 1.00

Geo Group currently has a consensus target price of $40.00, suggesting a potential upside of 28.74%. Given Geo Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Geo Group is more favorable than Perma-Fix Environmental Services.

Profitability

This table compares Geo Group and Perma-Fix Environmental Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geo Group 10.31% 10.42% 4.14%
Perma-Fix Environmental Services -37.04% -35.46% -20.22%

Earnings & Valuation

This table compares Geo Group and Perma-Fix Environmental Services”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Geo Group $2.63 billion 1.55 $254.37 million $2.12 14.66
Perma-Fix Environmental Services $61.67 million 5.98 -$13.78 million ($1.13) -15.37

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

Institutional & Insider Ownership

76.1% of Geo Group shares are owned by institutional investors. Comparatively, 25.5% of Perma-Fix Environmental Services shares are owned by institutional investors. 5.0% of Geo Group shares are owned by insiders. Comparatively, 8.4% of Perma-Fix Environmental Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Geo Group beats Perma-Fix Environmental Services on 13 of the 15 factors compared between the two stocks.

About Geo Group

(Get Free Report)

The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.

About Perma-Fix Environmental Services

(Get Free Report)

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. The company through Treatment and Services segments. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; health physics services; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical and management personnel and services; and waste management services. This segment also offers nuclear services, including D&D of government and commercial facilities, including engineering, technology applications, specialty services, logistics, transportation, processing, and disposal; and license termination support, such as project management, planning, characterization, waste stream identification and delineation, remediation/demolition, compliance demonstration, final status survey, reporting, transportation, disposal and emergency response. In addition, it maintains, services, maintains, calibrates, and sources health physics, IH and customized nuclear, environmental, and occupational safety and health instruments. The company provides its services to research institutions, commercial companies, public utilities, and governmental agencies through direct sales to customers or through intermediaries. Perma-Fix Environmental Services, Inc. was incorporated in 1990 and is headquartered in Atlanta, Georgia.

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