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OUT vs. AMT: Which Stock Should Value Investors Buy Now?

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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Outfront Media and American Tower are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. 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. However, value investors will care about much more than just this.

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 9.24, while AMT has a forward P/E of 20.74. We also note that OUT has a PEG ratio of 1.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMT currently has a PEG ratio of 1.52.

Another notable valuation metric for OUT is its P/B ratio of 2.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AMT has a P/B of 12.24.

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

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.


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