Critical Analysis: OUTFRONT Media (OUT) vs. Its Peers

OUTFRONT Media (NYSE: OUT) is one of 17 public companies in the “Specialized REITs” industry, but how does it weigh in compared to its rivals? We will compare OUTFRONT Media to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
OUTFRONT Media $1.51 billion $90.90 million 30.66
OUTFRONT Media Competitors $1.03 billion $121.54 million 68.30

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.

Insider & Institutional Ownership

69.3% of shares of all “Specialized REITs” companies are owned by institutional investors. 0.5% of OUTFRONT Media shares are owned by insiders. Comparatively, 5.9% of shares of all “Specialized REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 6.92% 8.52% 2.79%
OUTFRONT Media Competitors 31.92% 7.73% 3.12%

Risk & Volatility

OUTFRONT Media has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, OUTFRONT Media’s rivals have a beta of 0.99, indicating that their average share price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a summary 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 28 234 626 23 2.71

OUTFRONT Media currently has a consensus target price of $30.17, indicating a potential upside of 29.47%. As a group, “Specialized REITs” companies have a potential upside of 12.79%. Given OUTFRONT Media’s higher possible upside, equities research analysts clearly believe OUTFRONT Media is more favorable than its rivals.

Dividends

OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.2%. OUTFRONT Media pays out 189.5% 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 4.4% and pay out 181.3% of their earnings in the form of a dividend.

Summary

OUTFRONT Media rivals beat OUTFRONT Media on 10 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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