Financial Survey: NL Industries (NYSE:NL) vs. CoreCivic (NYSE:CXW)
by Kim Johansen · The Markets DailyCoreCivic (NYSE:CXW – Get Free Report) and NL Industries (NYSE:NL – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for CoreCivic and NL Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoreCivic | 0 | 1 | 4 | 0 | 2.80 |
| NL Industries | 0 | 1 | 0 | 0 | 2.00 |
CoreCivic presently has a consensus price target of $39.40, suggesting a potential upside of 31.48%. Given CoreCivic’s stronger consensus rating and higher probable upside, equities analysts clearly believe CoreCivic is more favorable than NL Industries.
Risk & Volatility
CoreCivic has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, NL Industries has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
Institutional and Insider Ownership
85.1% of CoreCivic shares are held by institutional investors. Comparatively, 10.7% of NL Industries shares are held by institutional investors. 1.8% of CoreCivic shares are held by insiders. Comparatively, 0.3% of NL Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares CoreCivic and NL Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoreCivic | 5.15% | 9.22% | 3.99% |
| NL Industries | -15.75% | -6.67% | -5.38% |
Earnings and Valuation
This table compares CoreCivic and NL Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoreCivic | $2.21 billion | 1.34 | $116.50 million | $1.25 | 23.97 |
| NL Industries | $158.30 million | 2.09 | -$37.83 million | ($0.52) | -13.01 |
CoreCivic has higher revenue and earnings than NL Industries. NL Industries is trading at a lower price-to-earnings ratio than CoreCivic, indicating that it is currently the more affordable of the two stocks.
Summary
CoreCivic beats NL Industries 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 NL Industries
NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in Europe, North America, the Asia Pacific, and internationally. The company manufactures and sells mechanical and electronic cabinet locks and other locking mechanisms, including disc tumbler locks; pin tumbler locking mechanisms under KeSet, System 64, TuBar, and Turbine brands; and electronic locks under CompX eLock and StealthLock brands for use in various applications, such as mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, vending and cash containment machines. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; dash panels, LED indicators, wire harnesses, and other accessories; and grab handles, pin cleats, and other accessories; primarily for performance and ski/wakeboard and performance boats. In addition, the company produces and markets value-added titanium dioxide pigments, a base industrial product used in imparting whiteness, brightness, opacity, and durability to a diverse range of customer applications and end-use markets, including coatings, plastics, paper, inks, cosmetics, pharmaceuticals, and other industrial and consumer products. The company sells its component products directly to original equipment manufacturers, as well as through distributors. NL Industries, Inc. was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. operates as a subsidiary of Valhi, Inc.