Head to Head Review: Omega Healthcare Investors (NYSE:OHI) and CoreCivic (NYSE:CXW)

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

Analyst Ratings

This is a summary of current ratings and price targets for Omega Healthcare Investors and CoreCivic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	0	7	6	0	2.46
CoreCivic	0	2	1	0	2.33

Omega Healthcare Investors currently has a consensus target price of $33.63, suggesting a potential upside of 4.26%. CoreCivic has a consensus target price of $16.50, suggesting a potential upside of 41.39%. Given CoreCivic’s higher possible upside, analysts plainly believe CoreCivic is more favorable than Omega Healthcare Investors.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$949.74 million	8.39	$242.18 million	$1.11	29.05
CoreCivic	$1.90 billion	0.68	$67.59 million	$0.56	20.84

Omega Healthcare Investors has higher earnings, but lower revenue 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.

Risk & Volatility

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

Institutional & Insider Ownership

65.3% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 85.1% of CoreCivic shares are held by institutional investors. 1.4% of Omega Healthcare Investors shares are held by insiders. Comparatively, 2.2% of CoreCivic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Omega Healthcare Investors beats CoreCivic on 10 of the 14 factors compared between the two stocks.

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.

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.