CoreCivic (NYSE:CXW – Get Rating) and UMH Properties (NYSE:UMH – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
80.9% of CoreCivic shares are owned by institutional investors. Comparatively, 71.3% of UMH Properties shares are owned by institutional investors. 1.9% of CoreCivic shares are owned by company insiders. Comparatively, 9.1% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares CoreCivic and UMH Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CoreCivic | 6.25% | 4.51% | 1.97% |
UMH Properties | -4.78% | -3.04% | -0.72% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CoreCivic | 0 | 0 | 1 | 0 | 3.00 |
UMH Properties | 0 | 0 | 4 | 0 | 3.00 |
CoreCivic presently has a consensus price target of $10.50, suggesting a potential upside of 18.51%. UMH Properties has a consensus price target of $21.75, suggesting a potential upside of 40.87%. Given UMH Properties’ higher possible upside, analysts plainly believe UMH Properties is more favorable than CoreCivic.
Volatility & Risk
CoreCivic has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Earnings & Valuation
This table compares CoreCivic and UMH Properties’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CoreCivic | $1.85 billion | 0.55 | $122.32 million | $0.99 | 8.95 |
UMH Properties | $195.78 million | 4.79 | -$4.85 million | ($0.67) | -23.04 |
CoreCivic has higher revenue and earnings than UMH Properties. UMH Properties is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.
Summary
CoreCivic beats UMH Properties on 8 of the 13 factors compared between the two stocks.
About CoreCivic
CoreCivic, Inc. operates as a government solutions company, which engages in the development and management of prisons and other correctional facilities. It operates through the following segments: Safety, Community, and Properties. The Safety segment consists of correctional and detention facilities. It provides transportation services to government agencies and TransCoR. The Community segment offers residential reentry centers and provides electronic monitoring case management services. The Properties segment consists of real estate properties owned by the company that are leased to government agencies. The company was founded by Thomas W. Beasley, T. Don Hutto, and Robert Crants on January 28, 1983 and is headquartered in Brentwood, TN.
About UMH Properties
UMH Properties, Inc. operates as a real estate investment trust. It engages in the ownership and operation of manufactured home communities in seven states throughout the northeast. These states include New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. Manufactured home communities provide long-term appreciation, recession resistant qualities, and stable income streams. The firm also leases manufactured homes to residents. It designs accommodate detached, single-family manufactured homes which are produced off-site by manufacturers and installed on sites within the communities. The company was founded by Eugene W. Landy in 1968 and is headquartered in Freehold, NJ.
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