GEO vs ACHC

For growth investors, The GEO Group, Inc.

(GEO) is the stronger pick with 8. 6% revenue growth year-over-year, versus 5. 0% for Acadia Healthcare Company, Inc. (ACHC). The GEO Group, Inc. (GEO) offers the better valuation at 11. 7x trailing P/E (18. 5x forward), making it the more compelling value choice. Analysts rate The GEO Group, Inc. (GEO) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Acadia Healthcare Company, Inc.

is actually cheaper at 16. 4x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, The GEO Group, Inc.

(GEO) delivered a total return of +269. 6%, compared to -61. 8% for Acadia Healthcare Company, Inc. (ACHC). Over 10 years, the gap is even starker: GEO returned +36. 1% versus ACHC's -58. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Acadia Healthcare Company, Inc.

(ACHC) is the lower-risk stock at 0. 84β versus The GEO Group, Inc. 's 1. 01β — meaning GEO is approximately 20% more volatile than ACHC relative to the S&P 500. On balance sheet safety, The GEO Group, Inc. (GEO) carries a lower debt/equity ratio of 115% versus 124% for Acadia Healthcare Company, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The GEO Group, Inc.

(GEO) is pulling ahead at 8. 6% versus 5. 0% for Acadia Healthcare Company, Inc. (ACHC). On earnings-per-share growth, the picture is similar: The GEO Group, Inc. grew EPS 727. 3% year-over-year, compared to -537. 4% for Acadia Healthcare Company, Inc.. Over a 3-year CAGR, ACHC leads at 8. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The GEO Group, Inc.

(GEO) is the more profitable company, earning 9. 7% net margin versus -33. 3% for Acadia Healthcare Company, Inc. — meaning it keeps 9. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACHC leads at 11. 7% versus 9. 8% for GEO. At the gross margin level — before operating expenses — GEO leads at 25. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Acadia Healthcare Company, Inc.

(ACHC) trades at 16. 4x forward P/E versus 18. 5x for The GEO Group, Inc. — 2. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GEO: 15. 5% to $24. 50.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Acadia Healthcare Company, Inc.

(ACHC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 84)). Both have compounded well over 10 years (ACHC: -58. 5%, GEO: +36. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (GEO (Industrials) and ACHC (Healthcare)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: GEO is a small-cap deep-value stock; ACHC is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.