Contrasting CoreCivic (NYSE:CXW) and Omega Healthcare Investors (NYSE:OHI)

CoreCivic (NYSE:CXW) and Omega Healthcare Investors (NYSE:OHI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for CoreCivic and Omega Healthcare Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCivic	0	2	1	0	2.33
Omega Healthcare Investors	0	7	5	1	2.54

CoreCivic currently has a consensus price target of $16.50, suggesting a potential upside of 45.89%. Omega Healthcare Investors has a consensus price target of $33.63, suggesting a potential upside of 2.86%. Given CoreCivic’s higher possible upside, analysts clearly believe CoreCivic is more favorable than Omega Healthcare Investors.

Valuation and Earnings

This table compares CoreCivic and Omega Healthcare Investors’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreCivic	$1.90 billion	0.66	$67.59 million	$0.56	20.20
Omega Healthcare Investors	$974.84 million	8.29	$242.18 million	$1.11	29.45

Omega Healthcare Investors has lower revenue, but higher earnings than CoreCivic. CoreCivic is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CoreCivic has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of CoreCivic shares are owned by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are owned by institutional investors. 2.2% of CoreCivic shares are owned by insiders. Comparatively, 1.4% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares CoreCivic and Omega Healthcare Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreCivic	3.34%	5.74%	2.73%
Omega Healthcare Investors	28.07%	7.23%	2.96%

Summary

Omega Healthcare Investors beats CoreCivic on 11 of the 15 factors compared between the two stocks.

About CoreCivic

CoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. Its correctional, detention, and residential reentry facilities offer rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. The company owns and operates correctional and detention facilities, residential reentry centers, and properties for lease. CoreCivic, Inc. was founded in 1983 and is based in Brentwood, Tennessee.

About Omega Healthcare Investors

Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.