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OUT vs. CCI: Which Stock Should Value Investors Buy 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 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Outfront Media has a Zacks Rank of #2 (Buy), while Crown Castle 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 CCI 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OUT currently has a forward P/E ratio of 8.33, while CCI has a forward P/E of 14.31. We also note that OUT has a PEG ratio of 0.83. 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. CCI currently has a PEG ratio of 2.51.

Another notable valuation metric for OUT is its P/B ratio of 4.48. 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 7.11.

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

OUT has seen stronger estimate revision activity and sports more attractive valuation metrics than CCI, so it seems like value investors will conclude that OUT is the superior option right now.


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

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