Geo Group (NYSE: GEO) is one of 15 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare Geo Group to similar companies based on the strength of its dividends, valuation, earnings, risk, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares Geo Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Geo Group $2.18 billion $148.71 million 19.13
Geo Group Competitors $957.09 million $112.54 million 47.35

Geo Group has higher revenue and earnings than its competitors. 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.

Volatility and Risk

Geo Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Geo Group’s competitors have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Profitability

This table compares Geo Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geo Group 7.05% 14.85% 4.17%
Geo Group Competitors 35.14% 8.03% 3.23%

Analyst Ratings

This is a breakdown of current recommendations for Geo Group and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group 0 1 2 0 2.67
Geo Group Competitors 31 246 642 23 2.70

Geo Group presently has a consensus price target of $33.78, suggesting a potential upside of 30.77%. As a group, “Specialized REITs” companies have a potential upside of 107.58%. Given Geo Group’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Geo Group has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

95.7% of Geo Group shares are held by institutional investors. Comparatively, 65.6% of shares of all “Specialized REITs” companies are held by institutional investors. 2.4% of Geo Group shares are held by company insiders. Comparatively, 6.3% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Geo Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.3%. 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 4.4% and pay out 256.4% of their earnings in the form of a dividend. Geo Group has raised its dividend for 4 consecutive years. Geo Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Geo Group beats its competitors on 8 of the 15 factors compared.

About 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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