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 similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Dividends

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 138.2% 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 raised 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.

Valuation & Earnings

This table compares The GEO Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The GEO Group $2.18 billion $148.71 million 18.46
The GEO Group Competitors $957.09 million $112.54 million 79.56

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.

Volatility & Risk

The GEO Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, The GEO Group’s competitors have a beta of 0.88, suggesting that their average share price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

95.8% of The GEO Group shares are owned by institutional investors. Comparatively, 65.7% of shares of all “Specialized REITs” companies are owned by institutional investors. 2.4% of The GEO Group shares are owned by company insiders. Comparatively, 6.3% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for The GEO Group and its competitors, as provided by MarketBeat.

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 currently has a consensus price target of $33.78, suggesting a potential upside of 34.57%. As a group, “Specialized REITs” companies have a potential upside of 17.35%. Given The GEO Group’s higher probable upside, equities research analysts plainly believe The GEO Group is more favorable than its competitors.

Profitability

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%

Summary

The GEO Group beats its competitors on 9 of the 15 factors compared.

The GEO Group Company Profile

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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