Head to Head Analysis: CoreCivic (NYSE:CXW) & Granite Real Estate (NYSE:GRP.U)

Granite Real Estate (NYSE:GRP.U) and CoreCivic (NYSE:CXW) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Granite Real Estate and CoreCivic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Real Estate	48.19%	5.20%	3.02%
CoreCivic	5.21%	7.12%	3.54%

Valuation and Earnings

This table compares Granite Real Estate and CoreCivic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Real Estate	$415.37 million	8.04	$263.17 million	$3.86	14.28
CoreCivic	$2.09 billion	0.90	$68.87 million	$0.99	17.67

Granite Real Estate has higher earnings, but lower revenue than CoreCivic. Granite Real Estate is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

57.1% of Granite Real Estate shares are owned by institutional investors. Comparatively, 85.1% of CoreCivic shares are owned by institutional investors. 0.3% of Granite Real Estate shares are owned by company insiders. Comparatively, 2.3% of CoreCivic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Granite Real Estate and CoreCivic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Real Estate	0	0	0	0	0.00
CoreCivic	0	1	3	0	2.75

CoreCivic has a consensus price target of $34.00, indicating a potential upside of 94.40%. Given CoreCivic’s stronger consensus rating and higher probable upside, analysts plainly believe CoreCivic is more favorable than Granite Real Estate.

Summary

CoreCivic beats Granite Real Estate on 9 of the 13 factors compared between the two stocks.

About Granite Real Estate

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.

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.