CoreCivic (NYSE:CXW – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Volatility and Risk
CoreCivic has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.
Profitability
This table compares CoreCivic and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoreCivic | 5.24% | 7.38% | 3.60% |
| Diversified Healthcare Trust | -22.90% | -18.90% | -7.20% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoreCivic | $1.96 billion | 1.05 | $68.87 million | $0.99 | 19.81 |
| Diversified Healthcare Trust | $1.54 billion | 0.82 | -$370.26 million | ($1.46) | -3.55 |
CoreCivic has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
85.1% of CoreCivic shares are owned by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 2.3% of CoreCivic shares are owned by insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for CoreCivic and Diversified Healthcare Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoreCivic | 0 | 1 | 3 | 0 | 2.75 |
| Diversified Healthcare Trust | 1 | 1 | 1 | 0 | 2.00 |
CoreCivic presently has a consensus price target of $34.00, indicating a potential upside of 73.40%. Diversified Healthcare Trust has a consensus price target of $5.75, indicating a potential upside of 11.00%. Given CoreCivic’s stronger consensus rating and higher probable upside, equities analysts plainly believe CoreCivic is more favorable than Diversified Healthcare Trust.
Summary
CoreCivic beats Diversified Healthcare Trust on 13 of the 14 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 Diversified Healthcare Trust
Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.
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