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

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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 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.

Right now, Outfront Media is sporting a Zacks Rank of #2 (Buy), while American Tower has a Zacks Rank of #3 (Hold). 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 10.81, while AMT has a forward P/E of 26.36. We also note that OUT has a PEG ratio of 1.47. 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 1.62.

Another notable valuation metric for OUT is its P/B ratio of 3.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMT has a P/B of 15.33.

These are just a few of the metrics contributing to OUT's Value grade of B and AMT's Value grade of F.

OUT sticks out from AMT 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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American Tower Corporation (AMT) - free report >>

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