The GEO Group (NYSE:GEO) and Keppel REIT (OTCMKTS:KREVF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Institutional and Insider Ownership
75.7% of The GEO Group shares are held by institutional investors. 2.7% of The GEO Group shares are held by 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.
This is a summary of current ratings and price targets for The GEO Group and Keppel REIT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||0||1||0||3.00|
The GEO Group presently has a consensus target price of $15.00, suggesting a potential upside of 41.11%. Given The GEO Group’s higher possible upside, equities research analysts clearly believe The GEO Group is more favorable than Keppel REIT.
Valuation and Earnings
This table compares The GEO Group and Keppel REIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The GEO Group||$2.48 billion||0.52||$166.60 million||$2.75||3.87|
The GEO Group has higher revenue and earnings than Keppel REIT.
Risk and Volatility
The GEO Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Keppel REIT has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
This table compares The GEO Group and Keppel REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||6.11%||17.43%||4.06%|
The GEO Group beats Keppel REIT on 9 of the 9 factors compared between the two stocks.
The GEO Group Company Profile
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe. GEO is the world's leading provider of diversified correctional, detention, community reentry, and electronic monitoring services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the ownership and/or management of 135 facilities totaling approximately 96,000 beds, including projects under development, with a growing workforce of approximately 23,000 professionals.
Keppel REIT Company Profile
Keppel REIT was listed by way of an introduction on 28 April 2006. It is one of Asia's leading REITs with a young and large portfolio of premium Grade A commercial assets in Singapore's prime business and financial districts. Keppel REIT's objective is to generate stable income and long-term growth for Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Singapore and pan-Asia. The REIT has assets under management of over $8 billion in Singapore as well as key Australian cities of Sydney, Melbourne, Brisbane and Perth. Keppel REIT is sponsored by Keppel Land Limited, one of Asia's leading property companies. It is managed by Keppel REIT Management Limited, a wholly-owned subsidiary of Keppel Capital Holdings Pte. Ltd. (Keppel Capital). Keppel Capital is a premier asset manager in Asia with a diversified portfolio in real estate, infrastructure and data centre properties in key global markets.
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