Head to Head Comparison: EastGroup Properties (NYSE:EGP) and CoreCivic (NYSE:CXW)

EastGroup Properties (NYSE:EGP) and CoreCivic (NYSE:CXW) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation and Earnings

This table compares EastGroup Properties and CoreCivic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$570.59 million	14.84	$200.49 million	$4.84	35.33
CoreCivic	$1.90 billion	1.25	$67.59 million	$0.67	31.99

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

Profitability

This table compares EastGroup Properties and CoreCivic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	37.19%	8.56%	5.01%
CoreCivic	3.85%	6.55%	3.20%

Volatility & Risk

EastGroup Properties has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, CoreCivic has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for EastGroup Properties and CoreCivic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	6	8	0	2.57
CoreCivic	0	2	1	0	2.33

EastGroup Properties presently has a consensus target price of $191.21, indicating a potential upside of 11.82%. CoreCivic has a consensus target price of $23.00, indicating a potential upside of 7.33%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, analysts clearly believe EastGroup Properties is more favorable than CoreCivic.

Insider and Institutional Ownership

92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 85.1% of CoreCivic shares are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by insiders. Comparatively, 1.9% of CoreCivic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

EastGroup Properties beats CoreCivic on 12 of the 14 factors compared between the two stocks.

About EastGroup Properties

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.

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.