Head to Head Contrast: CoreCivic (NYSE:CXW) and Rollins (NYSE:ROL)

CoreCivic (NYSE:CXW) and Rollins (NYSE:ROL) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Risk and Volatility

CoreCivic has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Rollins has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for CoreCivic and Rollins, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCivic	0	0	4	0	3.00
Rollins	4	10	4	1	2.11

CoreCivic currently has a consensus price target of $39.40, indicating a potential upside of 19.63%. Rollins has a consensus price target of $45.94, indicating a potential upside of 43.79%. Given Rollins’ higher probable upside, analysts clearly believe Rollins is more favorable than CoreCivic.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreCivic	$2.48 billion	1.31	$116.50 million	$1.25	26.35
Rollins	$3.76 billion	4.09	$526.71 million	$1.10	29.05

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

Dividends

CoreCivic pays an annual dividend of $1.76 per share and has a dividend yield of 5.3%. Rollins pays an annual dividend of $0.73 per share and has a dividend yield of 2.3%. CoreCivic pays out 140.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rollins pays out 66.4% of its earnings in the form of a dividend. Rollins has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

85.1% of CoreCivic shares are held by institutional investors. Comparatively, 51.8% of Rollins shares are held by institutional investors. 1.8% of CoreCivic shares are held by insiders. Comparatively, 5.8% of Rollins shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CoreCivic and Rollins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreCivic	5.15%	9.22%	3.99%
Rollins	13.55%	38.81%	17.24%

Summary

Rollins beats CoreCivic on 13 of the 17 factors compared between the two stocks.

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.

About Rollins

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.