Contrasting Boyd Group Services (OTCMKTS:BYDGF) and Geo Group (NYSE:GEO)

Boyd Group Services (OTCMKTS:BYDGF) and Geo Group (NYSE:GEO) are both mid-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Boyd Group Services has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Geo Group has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Boyd Group Services and Geo Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boyd Group Services	0.27%	2.70%	0.91%
Geo Group	10.31%	10.42%	4.14%

Institutional & Insider Ownership

0.2% of Boyd Group Services shares are owned by institutional investors. Comparatively, 76.1% of Geo Group shares are owned by institutional investors. 5.0% of Geo Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Boyd Group Services and Geo Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Group Services	0	0	3	0	3.00
Geo Group	0	1	4	1	3.00

Geo Group has a consensus price target of $40.00, suggesting a potential upside of 44.99%. Given Geo Group’s higher possible upside, analysts plainly believe Geo Group is more favorable than Boyd Group Services.

Earnings & Valuation

This table compares Boyd Group Services and Geo Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62
Geo Group	$2.63 billion	1.39	$254.37 million	$2.12	13.01

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

Summary

Geo Group beats Boyd Group Services on 12 of the 14 factors compared between the two stocks.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.

About Geo Group

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.