Corecivic (NYSE:CXW) and Industrial Logistics Properties Trust (NYSE:ILPT) Critical Review

Corecivic (NYSE:CXW) and Industrial Logistics Properties Trust (NASDAQ:ILPT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Corecivic and Industrial Logistics Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corecivic 0 1 0 0 2.00
Industrial Logistics Properties Trust 1 1 1 0 2.00



Corecivic currently has a consensus target price of $24.00, indicating a potential upside of 43.88%. Industrial Logistics Properties Trust has a consensus target price of $25.50, indicating a potential upside of 22.24%. Given Corecivic’s higher probable upside, analysts clearly believe Corecivic is more favorable than Industrial Logistics Properties Trust.

Profitability

This table compares Corecivic and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corecivic 9.39% 13.50% 5.16%
Industrial Logistics Properties Trust 35.17% 6.47% 3.64%

Institutional & Insider Ownership

81.6% of Corecivic shares are held by institutional investors. Comparatively, 91.9% of Industrial Logistics Properties Trust shares are held by institutional investors. 1.2% of Corecivic shares are held by company insiders. Comparatively, 1.3% of Industrial Logistics Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Corecivic and Industrial Logistics Properties Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corecivic $1.84 billion 1.08 $159.21 million $2.31 7.22
Industrial Logistics Properties Trust $162.53 million 8.35 $74.39 million $1.61 12.96

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

Volatility & Risk

Corecivic has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Dividends

Corecivic pays an annual dividend of $1.76 per share and has a dividend yield of 10.6%. Industrial Logistics Properties Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.3%. 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. Industrial Logistics Properties Trust pays out 82.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Corecivic beats Industrial Logistics Properties Trust on 9 of the 15 factors compared between the two stocks.

About Corecivic

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.

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.

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