Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Outfront Media (OUT - Free Report) and American Tower (AMT - 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.
Outfront Media has a Zacks Rank of #2 (Buy), while American Tower has a Zacks Rank of #3 (Hold) 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. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 9.96, while AMT has a forward P/E of 20.56. We also note that OUT has a PEG ratio of 1.36. 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 1.50.
Another notable valuation metric for OUT is its P/B ratio of 2.58. 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 12.04.
Based on these metrics and many more, OUT holds a Value grade of A, while AMT has a Value grade of D.
OUT has seen stronger estimate revision activity and sports more attractive valuation metrics than AMT, so it seems like value investors will conclude that OUT is the superior option right now.