Reviewing Geo Group Inc (The) (GEO) & Farmland Partners (FPI)
Geo Group Inc (The) (NYSE: GEO) and Farmland Partners (NYSE:FPI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This is a breakdown of recent recommendations for Geo Group Inc (The) and Farmland Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Geo Group Inc (The)||0||2||2||0||2.50|
Geo Group Inc (The) currently has a consensus target price of $33.78, indicating a potential upside of 27.08%. Farmland Partners has a consensus target price of $9.94, indicating a potential upside of 10.42%. Given Geo Group Inc (The)’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Geo Group Inc (The) is more favorable than Farmland Partners.
Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.1%. Farmland Partners pays an annual dividend of $0.51 per share and has a dividend yield of 5.7%. Geo Group Inc (The) pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Farmland Partners pays out 268.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Geo Group Inc (The) has raised its dividend for 2 consecutive years and Farmland Partners has raised its dividend for 4 consecutive years. Geo Group Inc (The) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Geo Group Inc (The) and Farmland Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Geo Group Inc (The)||$2.18 billion||1.51||$148.71 million||$1.35||19.69|
|Farmland Partners||$31.00 million||9.39||$4.30 million||$0.19||47.37|
Geo Group Inc (The) has higher revenue and earnings than Farmland Partners. Geo Group Inc (The) is trading at a lower price-to-earnings ratio than Farmland Partners, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Geo Group Inc (The) has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.
This table compares Geo Group Inc (The) and Farmland Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Geo Group Inc (The)||7.05%||14.85%||4.17%|
Institutional & Insider Ownership
95.1% of Geo Group Inc (The) shares are held by institutional investors. Comparatively, 39.3% of Farmland Partners shares are held by institutional investors. 2.4% of Geo Group Inc (The) shares are held by insiders. Comparatively, 2.8% of Farmland Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Geo Group Inc (The) beats Farmland Partners on 12 of the 17 factors compared between the two stocks.
Geo Group Inc (The) 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.
Farmland Partners Company Profile
Farmland Partners, Inc. is an internally managed real estate company. The Company owns and seeks to acquire farmland located in agricultural markets throughout North America. The Company is the sole member of the general partner of Farmland Partners Operating Partnership, LP (the Operating Partnership). All of the Company’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and the subsidiaries of the Operating Partnership. The Company’s principal investment focus is on farmland located in agricultural markets throughout North America, however, it may seek to acquire farmland outside of North America. It also may acquire properties related to farming, such as grain storage facilities, grain elevators, feedlots, cold storage facilities, processing plants and distribution centers, as well as livestock farms or ranches. As of December 31, 2016, the Company owned approximately 115,489 acres, as well as eight grain storage facilities.
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