CoreCivic (NYSE:CXW – Get Free Report) and Weyerhaeuser (NYSE:WY – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Dividends
CoreCivic pays an annual dividend of $1.76 per share and has a dividend yield of 11.9%. Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. CoreCivic pays out 298.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 69.6% of its earnings in the form of a dividend. Weyerhaeuser has raised its dividend for 3 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for CoreCivic and Weyerhaeuser, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CoreCivic | 0 | 0 | 2 | 0 | 3.00 |
Weyerhaeuser | 0 | 4 | 2 | 0 | 2.33 |
Profitability
This table compares CoreCivic and Weyerhaeuser’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CoreCivic | 3.56% | 4.70% | 2.22% |
Weyerhaeuser | 10.93% | 7.36% | 4.37% |
Valuation and Earnings
This table compares CoreCivic and Weyerhaeuser’s 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 | 0.87 | $67.59 million | $0.59 | 24.97 |
Weyerhaeuser | $7.67 billion | 2.99 | $839.00 million | $1.15 | 27.37 |
Weyerhaeuser has higher revenue and earnings than CoreCivic. CoreCivic is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CoreCivic has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Insider & Institutional Ownership
85.1% of CoreCivic shares are owned by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are owned by institutional investors. 1.9% of CoreCivic shares are owned by company insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Weyerhaeuser beats CoreCivic on 11 of the 16 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 Weyerhaeuser
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.
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