Back to top

Image: Bigstock

OUT or AMT: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Outfront Media (OUT - Free Report) and American Tower (AMT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Outfront Media has a Zacks Rank of #2 (Buy), while American Tower has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OUT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

OUT currently has a forward P/E ratio of 9.85, while AMT has a forward P/E of 20.90. We also note that OUT has a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMT currently has a PEG ratio of 1.53.

Another notable valuation metric for OUT is its P/B ratio of 2.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMT has a P/B of 11.97.

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

OUT stands above AMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OUT is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Tower Corporation (AMT) - free report >>

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

Published in