Head to Head Analysis: Easterly Government Properties (NYSE:DEA) vs. Corecivic (NYSE:CXW)

Easterly Government Properties (NYSE:DEA) and Corecivic (NYSE:CXW) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Dividends

Easterly Government Properties pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. Corecivic pays an annual dividend of $1.76 per share and has a dividend yield of 11.5%. Easterly Government Properties pays out 88.9% 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. Easterly Government Properties has increased its dividend for 3 consecutive years. Corecivic is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Easterly Government Properties and Corecivic’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Easterly Government Properties $160.59 million 9.71 $5.70 million $1.17 18.71
Corecivic $1.84 billion 0.99 $159.21 million $2.31 6.64

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

Profitability

This table compares Easterly Government Properties and Corecivic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Easterly Government Properties 4.17% 0.74% 0.41%
Corecivic 9.39% 13.50% 5.16%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Easterly Government Properties and Corecivic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Easterly Government Properties 0 1 5 0 2.83
Corecivic 0 1 0 0 2.00

Easterly Government Properties currently has a consensus target price of $22.00, suggesting a potential upside of 0.50%. Corecivic has a consensus target price of $24.00, suggesting a potential upside of 56.56%. Given Corecivic’s higher possible upside, analysts clearly believe Corecivic is more favorable than Easterly Government Properties.

Volatility and Risk

Easterly Government Properties has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Corecivic has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

91.3% of Easterly Government Properties shares are owned by institutional investors. Comparatively, 81.8% of Corecivic shares are owned by institutional investors. 12.1% of Easterly Government Properties shares are owned by company insiders. Comparatively, 1.2% of Corecivic shares are owned by company 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.

Summary

Corecivic beats Easterly Government Properties on 10 of the 17 factors compared between the two stocks.

Easterly Government Properties Company Profile

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

Corecivic Company Profile

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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