Analyzing OUTFRONT Media (OUT) and Its Peers

OUTFRONT Media (NYSE: OUT) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it compare to its rivals? We will compare OUTFRONT Media to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for OUTFRONT Media and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OUTFRONT Media 0 2 4 0 2.67
OUTFRONT Media Competitors 29 240 634 23 2.70

OUTFRONT Media currently has a consensus price target of $30.17, suggesting a potential upside of 23.94%. As a group, “Specialized REITs” companies have a potential upside of 11.59%. Given OUTFRONT Media’s higher possible upside, equities analysts clearly believe OUTFRONT Media is more favorable than its rivals.

Institutional and Insider Ownership

98.8% of OUTFRONT Media shares are held by institutional investors. Comparatively, 71.8% of shares of all “Specialized REITs” companies are held by institutional investors. 0.5% of OUTFRONT Media shares are held by insiders. Comparatively, 5.5% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 5.9%. OUTFRONT Media pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 181.9% of their earnings in the form of a dividend. OUTFRONT Media is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

OUTFRONT Media has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, OUTFRONT Media’s rivals have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Profitability

This table compares OUTFRONT Media and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OUTFRONT Media 7.71% 9.57% 3.12%
OUTFRONT Media Competitors 31.27% 7.68% 2.90%

Valuation and Earnings

This table compares OUTFRONT Media and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
OUTFRONT Media $1.51 billion $90.90 million 28.98
OUTFRONT Media Competitors $1.03 billion $121.54 million 87.69

OUTFRONT Media has higher revenue, but lower earnings than its rivals. OUTFRONT Media is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

OUTFRONT Media beats its rivals on 8 of the 15 factors compared.

About OUTFRONT Media

OUTFRONT Media Inc. is a real estate investment trust (REIT), which provides advertising space (displays) on out-of-home advertising structures and sites in the United States and Canada. The Company’s segments are U.S. Media and Other. The U.S. Media segment includes U.S. Billboard and Transit. The Other segment includes International and Sports Marketing. The Company’s inventory consists of billboard displays, which are primarily located on the heavily traveled highways and roadways in Nielsen Designated Market Areas (DMAs), and transit advertising displays operated under multi-year contracts with municipalities in cities across the United States and Canada. The Company also has marketing and multimedia rights agreements with colleges, universities and other educational institutions, which entitle the Company to operate on-campus advertising displays, as well as manage marketing opportunities, media rights and experiential entertainment at sports events.

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