Geo Group Inc (The) (GEO) & Its Peers Head-To-Head Analysis

Geo Group Inc (The) (NYSE: GEO) is one of 16 public companies in the “Specialized REITs” industry, but how does it weigh in compared to its rivals? We will compare Geo Group Inc (The) to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Geo Group Inc (The) and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geo Group Inc (The) 7.05% 14.85% 4.17%
Geo Group Inc (The) Competitors 32.07% 7.70% 3.09%

Dividends

Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.1%. Geo Group Inc (The) pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 181.8% of their earnings in the form of a dividend. Geo Group Inc (The) has increased its dividend for 4 consecutive years. Geo Group Inc (The) is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk and Volatility

Geo Group Inc (The) has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Geo Group Inc (The)’s rivals have a beta of 1.04, meaning that their average stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Geo Group Inc (The) and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Geo Group Inc (The) $2.18 billion $148.71 million 19.69
Geo Group Inc (The) Competitors $1.03 billion $121.54 million 76.37

Geo Group Inc (The) has higher revenue and earnings than its rivals. Geo Group Inc (The) is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for Geo Group Inc (The) and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group Inc (The) 0 2 2 0 2.50
Geo Group Inc (The) Competitors 29 238 626 23 2.70

Geo Group Inc (The) currently has a consensus price target of $33.78, suggesting a potential upside of 27.08%. As a group, “Specialized REITs” companies have a potential upside of 11.55%. Given Geo Group Inc (The)’s higher probable upside, equities analysts plainly believe Geo Group Inc (The) is more favorable than its rivals.

Institutional & Insider Ownership

95.1% of Geo Group Inc (The) shares are owned by institutional investors. Comparatively, 69.3% of shares of all “Specialized REITs” companies are owned by institutional investors. 2.4% of Geo Group Inc (The) shares are owned by insiders. Comparatively, 5.9% of shares of all “Specialized REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Geo Group Inc (The) beats its rivals on 9 of the 15 factors compared.

About Geo Group Inc (The)

The GEO Group, Inc. is a real estate investment trust (REIT) specializing in the ownership, leasing and management of correctional, detention and re-entry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa, the United Kingdom and Canada. As of December 31, 2013, its worldwide operations included the management and/or ownership of approximately 77,000 beds at 98 correctional, detention and community based facilities, including idle faclities and projects under development, and also included the provision of monitoring of more than 70,000 offenders in a community-based environment on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states. The Company operates in four segments: United States Corrections and Detention segment, segment; International Services segment and Facility Construction and Design segment.

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