NNN REIT (NYSE:NNN – Get Free Report) and CoreCivic (NYSE:CXW – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Dividends
NNN REIT pays an annual dividend of $2.32 per share and has a dividend yield of 5.5%. CoreCivic pays an annual dividend of $1.76 per share and has a dividend yield of 8.6%. NNN REIT pays out 107.9% 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 pays out 288.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has increased its dividend for 35 consecutive years.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for NNN REIT and CoreCivic, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NNN REIT | 1 | 9 | 3 | 0 | 2.15 |
| CoreCivic | 0 | 0 | 3 | 0 | 3.00 |
Institutional and Insider Ownership
90.0% of NNN REIT shares are held by institutional investors. Comparatively, 85.1% of CoreCivic shares are held by institutional investors. 0.8% of NNN REIT shares are held by company insiders. Comparatively, 1.9% of CoreCivic shares are held by company 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.
Earnings & Valuation
This table compares NNN REIT and CoreCivic”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NNN REIT | $869.27 million | 9.10 | $396.83 million | $2.15 | 19.56 |
| CoreCivic | $1.96 billion | 1.13 | $68.87 million | $0.61 | 33.45 |
NNN REIT has higher earnings, but lower revenue than CoreCivic. NNN REIT 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
NNN REIT has a beta of 1.1, suggesting that its share price is 10% 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.
Profitability
This table compares NNN REIT and CoreCivic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NNN REIT | 45.65% | 9.28% | 4.51% |
| CoreCivic | 3.51% | 5.97% | 2.97% |
Summary
NNN REIT beats CoreCivic on 10 of the 16 factors compared between the two stocks.
About NNN REIT
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.
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.
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