Quad Graphics (NYSE:QUAD – Get Free Report) and CoreCivic (NYSE:CXW – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Profitability
This table compares Quad Graphics and CoreCivic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quad Graphics | 1.31% | 47.90% | 4.61% |
| CoreCivic | 5.15% | 9.22% | 3.99% |
Insider & Institutional Ownership
39.5% of Quad Graphics shares are owned by institutional investors. Comparatively, 85.1% of CoreCivic shares are owned by institutional investors. 14.2% of Quad Graphics shares are owned by insiders. Comparatively, 1.8% of CoreCivic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quad Graphics | 0 | 1 | 3 | 1 | 3.00 |
| CoreCivic | 0 | 0 | 4 | 0 | 3.00 |
Quad Graphics presently has a consensus target price of $12.00, indicating a potential upside of 26.05%. CoreCivic has a consensus target price of $39.40, indicating a potential upside of 21.42%. Given Quad Graphics’ higher possible upside, equities analysts plainly believe Quad Graphics is more favorable than CoreCivic.
Earnings & Valuation
This table compares Quad Graphics and CoreCivic”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quad Graphics | $2.42 billion | 0.20 | $27.00 million | $0.63 | 15.11 |
| CoreCivic | $2.21 billion | 1.45 | $116.50 million | $1.25 | 25.96 |
CoreCivic has lower revenue, but higher earnings than Quad Graphics. Quad Graphics is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Quad Graphics has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, CoreCivic has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
About Quad Graphics
Quad/Graphics, Inc. provides marketing solutions worldwide. The company operates through United States Print and Related Services, and International segments. It offers printing services, such as retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products; and paper procurement services. The company also provides marketing and other services, including data and analytics, technology solutions, media services, creative and content solutions, managed services, and execution in non-print channels, as well as manufactures ink. It serves blue-chip companies that operate in various industries, and serve businesses and consumers across various industry verticals comprising retail, consumer packaged goods and direct-to-consumer, as well as financial services and health. The company was founded in 1971 and is headquartered in Sussex, Wisconsin.
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.
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