Gafisa (OTCMKTS:GFASY – Get Rating) and The GEO Group (NYSE:GEO – Get Rating) are both small-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
This is a breakdown of current recommendations and price targets for Gafisa and The GEO Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The GEO Group||0||0||0||0||N/A|
Earnings and Valuation
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gafisa||$151.67 million||0.34||$16.71 million||$1.08||2.50|
|The GEO Group||$2.26 billion||0.53||$77.42 million||$0.48||20.17|
The GEO Group has higher revenue and earnings than Gafisa. Gafisa is trading at a lower price-to-earnings ratio than The GEO Group, indicating that it is currently the more affordable of the two stocks.
This table compares Gafisa and The GEO Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The GEO Group||3.48%||16.83%||4.04%|
Volatility & Risk
Gafisa has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, The GEO Group has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Insider & Institutional Ownership
84.0% of The GEO Group shares are owned by institutional investors. 3.1% of Gafisa shares are owned by company insiders. Comparatively, 5.4% of The GEO Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
The GEO Group beats Gafisa on 9 of the 11 factors compared between the two stocks.
Gafisa S.A. operates as a homebuilder under the Gafisa brand name in Brazil. The company engages in the development, sale, and brokerage of residential units, such as luxury buildings with swimming pools, gyms, visitor parking, and other amenities for higher and middle-income customers; entry-level buildings and house units for middle-low-income customers; and commercial units. It also develops land subdivisions for sale; and provides construction, technical, and real estate management services to third parties. Gafisa S.A. was founded in 1954 and is headquartered in São Paulo, Brazil.
About The GEO Group
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award- winning GEO Continuum of Care, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 102 facilities totaling approximately 82,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
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