CoreCivic (NYSE:CXW) & Vornado Realty Trust (NYSE:VNO) Head-To-Head Analysis

Vornado Realty Trust (NYSE:VNO) and CoreCivic (NYSE:CXW) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

90.0% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 85.1% of CoreCivic shares are held by institutional investors. 8.1% of Vornado Realty Trust shares are held by insiders. Comparatively, 1.9% of CoreCivic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vornado Realty Trust and CoreCivic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	2	6	2	0	2.00
CoreCivic	0	1	2	0	2.67

Vornado Realty Trust currently has a consensus price target of $36.58, indicating a potential downside of 18.10%. CoreCivic has a consensus price target of $31.00, indicating a potential upside of 41.81%. Given CoreCivic’s stronger consensus rating and higher probable upside, analysts clearly believe CoreCivic is more favorable than Vornado Realty Trust.

Profitability

This table compares Vornado Realty Trust and CoreCivic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	0.46%	1.72%	0.48%
CoreCivic	3.85%	6.55%	3.20%

Earnings and Valuation

This table compares Vornado Realty Trust and CoreCivic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	4.70	$105.49 million	($0.29)	-154.00
CoreCivic	$1.90 billion	1.27	$67.59 million	$0.67	32.63

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

Volatility and Risk

Vornado Realty Trust has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, CoreCivic has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Summary

CoreCivic beats Vornado Realty Trust on 8 of the 13 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

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.