Critical Comparison: CoreCivic (NYSE:CXW) vs. Sun Communities (NYSE:SUI)

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

Profitability

This table compares CoreCivic and Sun Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreCivic	3.50%	6.10%	2.94%
Sun Communities	3.49%	1.50%	0.66%

Valuation and Earnings

This table compares CoreCivic and Sun Communities”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreCivic	$1.97 billion	0.70	$67.59 million	$0.56	22.21
Sun Communities	$3.22 billion	5.18	-$201.00 million	$1.16	115.29

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

Insider & Institutional Ownership

85.1% of CoreCivic shares are held by institutional investors. Comparatively, 99.6% of Sun Communities shares are held by institutional investors. 1.9% of CoreCivic shares are held by company insiders. Comparatively, 1.9% of Sun Communities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

CoreCivic pays an annual dividend of $1.76 per share and has a dividend yield of 14.1%. Sun Communities pays an annual dividend of $3.76 per share and has a dividend yield of 2.8%. CoreCivic pays out 314.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sun Communities pays out 324.1% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CoreCivic and Sun Communities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCivic	0	2	1	0	2.33
Sun Communities	0	4	5	0	2.56

CoreCivic presently has a consensus target price of $16.50, suggesting a potential upside of 32.64%. Sun Communities has a consensus target price of $142.20, suggesting a potential upside of 6.33%. Given CoreCivic’s higher probable upside, analysts clearly believe CoreCivic is more favorable than Sun Communities.

Volatility and Risk

CoreCivic has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Summary

Sun Communities beats CoreCivic on 8 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 Sun Communities

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.