Head-To-Head Review: Geo Group Inc (The) (GEO) and Gladstone Land Corporation (LAND)

Geo Group Inc (The) (NYSE: GEO) and Gladstone Land Corporation (NASDAQ:LAND) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Volatility & Risk

Geo Group Inc (The) has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Gladstone Land Corporation has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Geo Group Inc (The) and Gladstone Land Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geo Group Inc (The) 7.05% 14.85% 4.17%
Gladstone Land Corporation 1.14% 0.25% 0.07%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Geo Group Inc (The) and Gladstone Land Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geo Group Inc (The) 0 2 2 0 2.50
Gladstone Land Corporation 0 1 2 0 2.67

Geo Group Inc (The) presently has a consensus target price of $33.78, indicating a potential upside of 27.08%. Gladstone Land Corporation has a consensus target price of $14.13, indicating a potential upside of 3.03%. Given Geo Group Inc (The)’s higher probable upside, equities research analysts plainly believe Geo Group Inc (The) is more favorable than Gladstone Land Corporation.

Earnings and Valuation

This table compares Geo Group Inc (The) and Gladstone Land Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Geo Group Inc (The) $2.18 billion 1.51 $148.71 million $1.35 19.69
Gladstone Land Corporation $17.32 million 10.80 $440,000.00 $0.03 457.15

Geo Group Inc (The) has higher revenue and earnings than Gladstone Land Corporation. Geo Group Inc (The) is trading at a lower price-to-earnings ratio than Gladstone Land Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.1% of Geo Group Inc (The) shares are owned by institutional investors. Comparatively, 20.8% of Gladstone Land Corporation shares are owned by institutional investors. 2.4% of Geo Group Inc (The) shares are owned by insiders. Comparatively, 21.9% of Gladstone Land Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Geo Group Inc (The) pays an annual dividend of $1.88 per share and has a dividend yield of 7.1%. Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 3.9%. Geo Group Inc (The) pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Land Corporation pays out 1,767.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Land Corporation has increased its dividend for 4 consecutive years. Geo Group Inc (The) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Geo Group Inc (The) beats Gladstone Land Corporation on 11 of the 16 factors compared between the two stocks.

About Geo Group Inc (The)

The GEO Group, Inc. is a real estate investment trust (REIT) specializing in the ownership, leasing and management of correctional, detention and re-entry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa, the United Kingdom and Canada. As of December 31, 2013, its worldwide operations included the management and/or ownership of approximately 77,000 beds at 98 correctional, detention and community based facilities, including idle faclities and projects under development, and also included the provision of monitoring of more than 70,000 offenders in a community-based environment on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states. The Company operates in four segments: United States Corrections and Detention segment, segment; International Services segment and Facility Construction and Design segment.

About Gladstone Land Corporation

Gladstone Land Corporation is an agricultural real estate investment trust (REIT). The Company is engaged in the business of owning and leasing farmland. The Company also owns various farm-related facilities, such as cooling facilities, buildings utilized for the storage and assembly of boxes for shipping produce (box barns), packinghouses, processing facilities and various storage facilities. The Company is engaged in leasing its farms and farm-related facilities to independent or corporate farming operations. As of September 12, 2017, the Company owned 72 farms, including 58,777 total acres across seven states in the United States (Arizona, California, Colorado, Florida, Michigan, Nebraska and Oregon). As of December 31, 2016, the Company’s farms and facilities were leased to 40 different, unrelated tenants that are either independent or corporate farming operations. The Company focuses to own primarily single-tenant, agricultural real property.

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