Analyzing NL Industries (NYSE:NL) and CoreCivic (NYSE:CXW)

NL Industries (NYSE:NL) and CoreCivic (NYSE:CXW) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares NL Industries and CoreCivic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NL Industries	-15.75%	-6.67%	-5.38%
CoreCivic	5.15%	9.22%	3.99%

Volatility and Risk

NL Industries has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, CoreCivic has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares NL Industries and CoreCivic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NL Industries	$158.30 million	2.13	-$37.83 million	($0.52)	-13.23
CoreCivic	$2.48 billion	1.23	$116.50 million	$1.25	24.80

CoreCivic has higher revenue and earnings than NL Industries. NL Industries is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NL Industries	0	1	0	0	2.00
CoreCivic	0	1	4	0	2.80

CoreCivic has a consensus target price of $39.40, suggesting a potential upside of 27.08%. Given CoreCivic’s stronger consensus rating and higher possible upside, analysts plainly believe CoreCivic is more favorable than NL Industries.

Insider & Institutional Ownership

10.7% of NL Industries shares are held by institutional investors. Comparatively, 85.1% of CoreCivic shares are held by institutional investors. 0.3% of NL Industries shares are held by company insiders. Comparatively, 1.8% of CoreCivic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

NL Industries pays an annual dividend of $0.40 per share and has a dividend yield of 5.8%. CoreCivic pays an annual dividend of $1.76 per share and has a dividend yield of 5.7%. NL Industries pays out -76.9% of its earnings in the form of a dividend. CoreCivic pays out 140.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NL Industries has raised its dividend for 2 consecutive years. NL Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CoreCivic beats NL Industries on 13 of the 17 factors compared between the two stocks.

About NL Industries

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in Europe, North America, the Asia Pacific, and internationally. The company manufactures and sells mechanical and electronic cabinet locks and other locking mechanisms, including disc tumbler locks; pin tumbler locking mechanisms under KeSet, System 64, TuBar, and Turbine brands; and electronic locks under CompX eLock and StealthLock brands for use in various applications, such as mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, vending and cash containment machines. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; dash panels, LED indicators, wire harnesses, and other accessories; and grab handles, pin cleats, and other accessories; primarily for performance and ski/wakeboard and performance boats. In addition, the company produces and markets value-added titanium dioxide pigments, a base industrial product used in imparting whiteness, brightness, opacity, and durability to a diverse range of customer applications and end-use markets, including coatings, plastics, paper, inks, cosmetics, pharmaceuticals, and other industrial and consumer products. The company sells its component products directly to original equipment manufacturers, as well as through distributors. NL Industries, Inc. was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. operates as a subsidiary of Valhi, Inc.

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.