Financial Contrast: Gladstone Land Corporation (LAND) vs. Corrections Corp. of America (CXW)
Gladstone Land Corporation (NASDAQ: LAND) and Corrections Corp. of America (NYSE:CXW) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
This is a breakdown of current recommendations for Gladstone Land Corporation and Corrections Corp. of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gladstone Land Corporation||0||0||2||0||3.00|
|Corrections Corp. of America||0||1||3||0||2.75|
Gladstone Land Corporation currently has a consensus price target of $14.25, suggesting a potential upside of 11.50%. Corrections Corp. of America has a consensus price target of $30.33, suggesting a potential upside of 15.51%. Given Corrections Corp. of America’s higher probable upside, analysts plainly believe Corrections Corp. of America is more favorable than Gladstone Land Corporation.
Insider and Institutional Ownership
24.7% of Gladstone Land Corporation shares are held by institutional investors. Comparatively, 86.2% of Corrections Corp. of America shares are held by institutional investors. 21.9% of Gladstone Land Corporation shares are held by company insiders. Comparatively, 1.3% of Corrections Corp. of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 4.1%. Corrections Corp. of America pays an annual dividend of $1.68 per share and has a dividend yield of 6.4%. Gladstone Land Corporation pays out 1,060.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corrections Corp. of America pays out 93.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Land Corporation has increased its dividend for 4 consecutive years. Corrections Corp. of America is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Gladstone Land Corporation and Corrections Corp. of America’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Land Corporation||$21.14 million||7.26||$15.48 million||$0.05||255.65|
|Corrections Corp. of America||$1.82 billion||1.71||$452.80 million||$1.79||14.67|
Corrections Corp. of America has higher revenue and earnings than Gladstone Land Corporation. Corrections Corp. of America is trading at a lower price-to-earnings ratio than Gladstone Land Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Gladstone Land Corporation and Corrections Corp. of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gladstone Land Corporation||2.58%||0.57%||0.15%|
|Corrections Corp. of America||11.62%||14.54%||6.51%|
Risk & Volatility
Gladstone Land Corporation has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Corrections Corp. of America has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Corrections Corp. of America beats Gladstone Land Corporation on 11 of the 17 factors compared between the two stocks.
About Gladstone Land Corporation
Gladstone Land Corporation is an agricultural real estate investment trust (REIT). The Company is engaged in the business of owning and leasing farmland. The Company also owns various farm-related facilities, such as cooling facilities, buildings utilized for the storage and assembly of boxes for shipping produce (box barns), packinghouses, processing facilities and various storage facilities. The Company is engaged in leasing its farms and farm-related facilities to independent or corporate farming operations. As of July 17, 2017, the Company owned 69 farms, including 58,777 total acres across seven states in the United States (Arizona, California, Colorado, Florida, Michigan, Nebraska and Oregon). As of December 31, 2016, the Company’s farms and facilities were leased to 40 different, unrelated tenants that are either independent or corporate farming operations. The Company focuses to own primarily single-tenant, agricultural real property.
About Corrections Corp. of America
CoreCivic, Inc., formerly Corrections Corporation of America, is a diversified government solutions company. The Company provides partnership correctional, detention and residential reentry facilities and operates prison in the United States. The Company’s business offerings include CoreCivic Safety, CoreCivic Properties, and CoreCivic Community. The Company provides a range of solutions to government partners that serve the public good corrections and detention management, government real estate solutions, and network of residential reentry centers. As of March 31, 2017, the Company owned or controlled 48 correctional and detention facilities, owned or controlled 27 residential reentry centers, and managed an additional 11 correctional and detention facilities owned by its government partners, with a total design capacity of approximately 88,400 beds in 20 states.
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