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OUT vs. AMT: Which Stock Is the Better Value Option?

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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Outfront Media (OUT - Free Report) or American Tower (AMT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Outfront Media is sporting a Zacks Rank of #1 (Strong Buy), while American Tower has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OUT likely has seen a stronger improvement to its earnings outlook than AMT has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OUT currently has a forward P/E ratio of 9.17, while AMT has a forward P/E of 21.01. We also note that OUT has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMT currently has a PEG ratio of 1.59.

Another notable valuation metric for OUT is its P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMT has a P/B of 10.73.

These metrics, and several others, help OUT earn a Value grade of B, while AMT has been given a Value grade of D.

OUT sticks out from AMT in both our Zacks Rank and Style Scores models, so value investors will likely feel that OUT is the better option right now.


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American Tower Corporation (AMT) - free report >>

OUTFRONT Media Inc. (OUT) - free report >>