Ventas (NYSE:VTR) and Corecivic (NYSE:CXW) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Ventas pays an annual dividend of $3.17 per share and has a dividend yield of 5.4%. Corecivic pays an annual dividend of $1.76 per share and has a dividend yield of 10.4%. Ventas pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corecivic pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas has increased its dividend for 9 consecutive years and Corecivic has increased its dividend for 1 consecutive years. Corecivic is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Ventas and Corecivic’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ventas||$3.75 billion||5.83||$409.46 million||$4.07||14.39|
|Corecivic||$1.84 billion||1.10||$159.21 million||$2.31||7.32|
Ventas has higher revenue and earnings than Corecivic. Corecivic is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.
This table compares Ventas and Corecivic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Ventas has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Corecivic has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Insider and Institutional Ownership
87.5% of Ventas shares are owned by institutional investors. Comparatively, 80.9% of Corecivic shares are owned by institutional investors. 1.4% of Ventas shares are owned by insiders. Comparatively, 1.2% of Corecivic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Ventas and Corecivic, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ventas currently has a consensus target price of $64.78, indicating a potential upside of 10.64%. Given Ventas’ higher possible upside, equities analysts clearly believe Ventas is more favorable than Corecivic.
Ventas beats Corecivic on 11 of the 16 factors compared between the two stocks.
Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,200 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. References to Ventas or the Company mean Ventas, Inc. and its consolidated subsidiaries unless otherwise expressly noted.
CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust (REIT) and the nation's largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
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