Brink’s (NYSE:BCO – Get Free Report) and Geo Group (NYSE:GEO – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Risk & Volatility
Brink’s has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Geo Group has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Profitability
This table compares Brink’s and Geo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brink’s | 3.30% | 87.18% | 4.95% |
| Geo Group | 10.31% | 10.42% | 4.14% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brink’s | $5.48 billion | 0.82 | $199.70 million | $4.32 | 25.19 |
| Geo Group | $2.63 billion | 1.59 | $254.37 million | $2.12 | 15.00 |
Geo Group has lower revenue, but higher earnings than Brink’s. Geo Group is trading at a lower price-to-earnings ratio than Brink’s, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.0% of Brink’s shares are owned by institutional investors. Comparatively, 76.1% of Geo Group shares are owned by institutional investors. 1.0% of Brink’s shares are owned by company insiders. Comparatively, 5.0% of Geo Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Brink’s and Geo Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brink’s | 0 | 2 | 2 | 0 | 2.50 |
| Geo Group | 0 | 1 | 4 | 1 | 3.00 |
Brink’s presently has a consensus target price of $154.00, suggesting a potential upside of 41.51%. Geo Group has a consensus target price of $40.00, suggesting a potential upside of 25.79%. Given Brink’s’ higher probable upside, equities analysts clearly believe Brink’s is more favorable than Geo Group.
Summary
Brink’s beats Geo Group on 8 of the 15 factors compared between the two stocks.
About Brink’s
The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.
About Geo Group
The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.
Receive News & Ratings for Brink's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brink's and related companies with MarketBeat.com's FREE daily email newsletter.
