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

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Outfront Media (OUT - Free Report) and Crown Castle (CCI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Outfront Media is sporting a Zacks Rank of #1 (Strong Buy), while Crown Castle has a Zacks Rank of #3 (Hold). This means that OUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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 8.04, while CCI has a forward P/E of 16.18. We also note that OUT has a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CCI currently has a PEG ratio of 2.84.

Another notable valuation metric for OUT is its P/B ratio of 3.75. 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, CCI has a P/B of 7.38.

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

OUT sticks out from CCI 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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Crown Castle Inc. (CCI) - free report >>

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

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