The GEO Group (NYSE: GEO) is one of 15 publicly-traded companies in the “Specialized REITs” industry, but how does it weigh in compared to its competitors? We will compare The GEO Group to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.
This table compares The GEO Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||7.05%||14.85%||4.17%|
|The GEO Group Competitors||25.87%||7.30%||2.55%|
This is a summary of recent ratings and price targets for The GEO Group and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||1||2||0||2.67|
|The GEO Group Competitors||31||247||644||23||2.70|
The GEO Group presently has a consensus target price of $33.78, suggesting a potential upside of 34.57%. As a group, “Specialized REITs” companies have a potential upside of 17.16%. Given The GEO Group’s higher probable upside, analysts plainly believe The GEO Group is more favorable than its competitors.
Earnings & Valuation
This table compares The GEO Group and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|The GEO Group||$2.18 billion||$148.71 million||18.59|
|The GEO Group Competitors||$957.09 million||$112.54 million||79.73|
The GEO Group has higher revenue and earnings than its competitors. The GEO Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
The GEO Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, The GEO Group’s competitors have a beta of 0.88, indicating that their average share price is 12% less volatile than the S&P 500.
The GEO Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.5%. The GEO Group 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 4.5% and pay out 254.8% of their earnings in the form of a dividend. The GEO Group has increased its dividend for 4 consecutive years. The GEO Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
95.8% of The GEO Group shares are held by institutional investors. Comparatively, 65.7% of shares of all “Specialized REITs” companies are held by institutional investors. 2.4% of The GEO Group shares are held by insiders. Comparatively, 6.3% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
The GEO Group beats its competitors on 9 of the 15 factors compared.
About The GEO Group
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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