Critical Comparison: CoreCivic (NYSE:CXW) versus Iron Mountain (NYSE:IRM)

CoreCivic (NYSE:CXWGet Free Report) and Iron Mountain (NYSE:IRMGet Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

85.1% of CoreCivic shares are owned by institutional investors. Comparatively, 80.1% of Iron Mountain shares are owned by institutional investors. 2.2% of CoreCivic shares are owned by company insiders. Comparatively, 2.1% of Iron Mountain shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CoreCivic and Iron Mountain, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreCivic 0 2 1 0 2.33
Iron Mountain 1 0 5 0 2.67

CoreCivic currently has a consensus target price of $16.50, suggesting a potential upside of 24.15%. Iron Mountain has a consensus target price of $78.33, suggesting a potential downside of 14.61%. Given CoreCivic’s higher possible upside, equities research analysts plainly believe CoreCivic is more favorable than Iron Mountain.

Profitability

This table compares CoreCivic and Iron Mountain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreCivic 3.34% 5.74% 2.73%
Iron Mountain 5.45% 282.93% 3.74%

Earnings & Valuation

This table compares CoreCivic and Iron Mountain’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoreCivic $1.90 billion 0.78 $67.59 million $0.56 23.73
Iron Mountain $5.48 billion 4.91 $184.23 million $0.66 139.00

Iron Mountain has higher revenue and earnings than CoreCivic. CoreCivic is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

CoreCivic has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Iron Mountain has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

Iron Mountain beats CoreCivic on 11 of the 14 factors compared between the two stocks.

About CoreCivic

(Get Free Report)

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 Iron Mountain

(Get Free Report)

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers' work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

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