Virco Manufacturing (NASDAQ:VIRC – Get Free Report) and CoreCivic (NYSE:CXW – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Risk and Volatility
Virco Manufacturing has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, CoreCivic has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Institutional and Insider Ownership
31.0% of Virco Manufacturing shares are owned by institutional investors. Comparatively, 85.1% of CoreCivic shares are owned by institutional investors. 16.9% of Virco Manufacturing shares are owned by insiders. Comparatively, 1.8% of CoreCivic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Virco Manufacturing and CoreCivic, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Virco Manufacturing | 1 | 1 | 0 | 0 | 1.50 |
| CoreCivic | 0 | 0 | 4 | 0 | 3.00 |
CoreCivic has a consensus price target of $39.40, suggesting a potential upside of 28.48%. Given CoreCivic’s stronger consensus rating and higher possible upside, analysts plainly believe CoreCivic is more favorable than Virco Manufacturing.
Profitability
This table compares Virco Manufacturing and CoreCivic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Virco Manufacturing | -1.31% | -2.32% | -1.39% |
| CoreCivic | 5.15% | 9.22% | 3.99% |
Earnings & Valuation
This table compares Virco Manufacturing and CoreCivic”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Virco Manufacturing | $199.65 million | 0.51 | $2.57 million | ($0.16) | -40.44 |
| CoreCivic | $2.21 billion | 1.37 | $116.50 million | $1.25 | 24.53 |
CoreCivic has higher revenue and earnings than Virco Manufacturing. Virco Manufacturing 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 Virco Manufacturing on 13 of the 14 factors compared between the two stocks.
About Virco Manufacturing
Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States and Canada. The company offers seating products, including 4-leg chairs, cantilever chairs, mobile task chairs and lab stools, tablet armchairs, steel-frame and floor rockers, series stools, hard plastic seating, folding and upholstered stack chairs, and plastic stack and upholstered ergonomic chairs. It also provides activity, butcher block, folding, office, technology, and mobile tables; desks and workstations, and instructor media stations and towers; chair desks and combo units, tablet arm and caster units, mobile workstations, student desks, and returns and credenzas; and computer furniture solutions. In addition, the company provides administrative office furniture, including desks, returns, bookcases, and other items, as well as steel storage cabinets, wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables, mobile cabinets, and mobile chairs for school settings and offices; and handling and storage equipment, and stackable storage trucks. It serves public and private educational institutions, charter schools, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealers' network. Virco Mfg. Corporation was incorporated in 1950 and is headquartered in Torrance, California.
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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