Corecivic (NYSE:CXW) and AGNC Investment (NASDAQ:AGNC) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Corecivic and AGNC Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corecivic 9.39% 13.50% 5.16%
AGNC Investment -62.31% 11.47% 1.02%

Insider and Institutional Ownership

81.8% of Corecivic shares are held by institutional investors. Comparatively, 66.7% of AGNC Investment shares are held by institutional investors. 1.2% of Corecivic shares are held by company insiders. Comparatively, 0.3% of AGNC Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Corecivic and AGNC Investment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corecivic 0 1 0 0 2.00
AGNC Investment 0 2 4 0 2.67

Corecivic presently has a consensus price target of $24.00, indicating a potential upside of 38.25%. AGNC Investment has a consensus price target of $17.80, indicating a potential upside of 9.47%. Given Corecivic’s higher probable upside, analysts clearly believe Corecivic is more favorable than AGNC Investment.

Dividends

Corecivic pays an annual dividend of $1.76 per share and has a dividend yield of 10.1%. AGNC Investment pays an annual dividend of $1.92 per share and has a dividend yield of 11.8%. Corecivic pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AGNC Investment pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Corecivic and AGNC Investment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corecivic $1.84 billion 1.13 $159.21 million $2.31 7.52
AGNC Investment $776.00 million 11.48 $129.00 million $2.35 6.92

Corecivic has higher revenue and earnings than AGNC Investment. AGNC Investment is trading at a lower price-to-earnings ratio than Corecivic, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Corecivic has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, AGNC Investment has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Summary

Corecivic beats AGNC Investment on 11 of the 16 factors compared between the two stocks.

About Corecivic

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust (REIT) and the nation's largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).

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