Geo Group (NYSE:GEO) vs. Brink’s (NYSE:BCO) Financial Review
by Scott Moore · The Cerbat GemGeo Group (NYSE:GEO – Get Free Report) and Brink’s (NYSE:BCO – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.
Volatility & Risk
Geo Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Brink’s has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Insider and Institutional Ownership
76.1% of Geo Group shares are held by institutional investors. Comparatively, 95.0% of Brink’s shares are held by institutional investors. 5.0% of Geo Group shares are held by insiders. Comparatively, 1.0% of Brink’s shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Geo Group and Brink’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geo Group | $2.63 billion | 1.48 | $254.37 million | $2.12 | 13.98 |
| Brink’s | $5.26 billion | 0.83 | $199.70 million | $4.32 | 24.69 |
Geo Group has higher earnings, but lower revenue than Brink’s. Geo Group is trading at a lower price-to-earnings ratio than Brink’s, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Geo Group and Brink’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geo Group | 0 | 1 | 4 | 1 | 3.00 |
| Brink’s | 0 | 2 | 2 | 0 | 2.50 |
Geo Group currently has a consensus price target of $40.00, suggesting a potential upside of 35.00%. Brink’s has a consensus price target of $154.00, suggesting a potential upside of 44.40%. Given Brink’s’ higher probable upside, analysts clearly believe Brink’s is more favorable than Geo Group.
Profitability
This table compares Geo Group and Brink’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geo Group | 10.31% | 10.42% | 4.14% |
| Brink’s | 3.30% | 87.18% | 4.95% |
Summary
Brink’s beats Geo Group on 8 of the 15 factors compared between the two stocks.
About Geo Group
The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects. The company was founded in 1984 and is based in Boca Raton, Florida.
About Brink’s
The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.