The GEO Group (NYSE:GEO) and National Health Investors (NYSE:NHI) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
91.2% of The GEO Group shares are owned by institutional investors. Comparatively, 68.7% of National Health Investors shares are owned by institutional investors. 2.2% of The GEO Group shares are owned by company insiders. Comparatively, 5.6% of National Health Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares The GEO Group and National Health Investors’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The GEO Group||$2.26 billion||1.31||$146.24 million||$2.55||9.56|
|National Health Investors||$278.66 million||11.17||$159.36 million||$5.33||13.84|
National Health Investors has lower revenue, but higher earnings than The GEO Group. The GEO Group is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for The GEO Group and National Health Investors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||0||1||0||3.00|
|National Health Investors||1||5||4||0||2.30|
The GEO Group currently has a consensus price target of $32.00, suggesting a potential upside of 31.20%. National Health Investors has a consensus price target of $74.50, suggesting a potential upside of 0.98%. Given The GEO Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The GEO Group is more favorable than National Health Investors.
The GEO Group pays an annual dividend of $1.88 per share and has a dividend yield of 7.7%. National Health Investors pays an annual dividend of $4.00 per share and has a dividend yield of 5.4%. The GEO Group pays out 73.7% of its earnings in the form of a dividend. National Health Investors pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The GEO Group has raised its dividend for 5 consecutive years and National Health Investors has raised its dividend for 8 consecutive years. The GEO Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares The GEO Group and National Health Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||6.45%||13.90%||3.80%|
|National Health Investors||53.16%||11.49%||5.95%|
Volatility and Risk
The GEO Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
National Health Investors beats The GEO Group on 9 of the 17 factors compared between the two stocks.
The GEO Group Company Profile
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust ("REIT") specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe. GEO is the world's leading provider of diversified correctional, detention, community reentry, and electronic monitoring services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the ownership and/or management of 139 facilities totaling approximately 96,000 beds, including projects under development, with a growing workforce of approximately 23,000 professionals.
National Health Investors Company Profile
Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.
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