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

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Outfront Media (OUT - Free Report) and Crown Castle (CCI - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Outfront Media is sporting a Zacks Rank of #2 (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. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

OUT currently has a forward P/E ratio of 8.97, while CCI has a forward P/E of 13.90. We also note that OUT has a PEG ratio of 0.90. 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. CCI currently has a PEG ratio of 2.44.

Another notable valuation metric for OUT is its P/B ratio of 4.76. 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, CCI has a P/B of 6.91.

Based on these metrics and many more, OUT holds a Value grade of B, while CCI has a Value grade of D.

OUT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OUT is likely the superior value option right now.


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Crown Castle Inc. (CCI) - free report >>

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

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