Critical Contrast: CoreCivic (CXW) versus Its Competitors

CoreCivic (NYSE:CXW) is one of 354 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it compare to its rivals? We will compare CoreCivic to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares CoreCivic and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CoreCivic	$2.21 billion	$116.50 million	24.24
CoreCivic Competitors	$2.44 billion	$140.58 million	14.79

CoreCivic’s rivals have higher revenue and earnings than CoreCivic. CoreCivic is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares CoreCivic and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreCivic	5.15%	9.22%	3.99%
CoreCivic Competitors	-67.40%	-119.18%	-1.34%

Institutional & Insider Ownership

85.1% of CoreCivic shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 1.8% of CoreCivic shares are held by company insiders. Comparatively, 17.0% of shares of all “Commercial Services & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

CoreCivic has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, CoreCivic’s rivals have a beta of 2.55, suggesting that their average share price is 155% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CoreCivic and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCivic	0	1	4	0	2.80
CoreCivic Competitors	1899	6239	9019	663	2.47

CoreCivic presently has a consensus price target of $39.40, suggesting a potential upside of 30.03%. As a group, “Commercial Services & Supplies” companies have a potential upside of 9.30%. Given CoreCivic’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CoreCivic is more favorable than its rivals.

Summary

CoreCivic beats its rivals on 8 of the 13 factors compared.

CoreCivic Company Profile

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.