OUTFRONT Media (NYSE: OUT) and MDC Partners (NASDAQ:MDCA) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitabiliy and institutional ownership.

Dividends

OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.1%. MDC Partners pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. OUTFRONT Media pays out 205.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MDC Partners pays out -30.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

86.7% of MDC Partners shares are owned by institutional investors. 0.4% of OUTFRONT Media shares are owned by insiders. Comparatively, 3.4% of MDC Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares OUTFRONT Media and MDC Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OUTFRONT Media $1.50 billion 2.18 $390.70 million $0.70 33.75
MDC Partners $1.42 billion 0.35 $149.12 million ($0.68) -12.87

OUTFRONT Media has higher revenue and earnings than MDC Partners. MDC Partners is trading at a lower price-to-earnings ratio than OUTFRONT Media, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

OUTFRONT Media has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, MDC Partners has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for OUTFRONT Media and MDC Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OUTFRONT Media 0 3 3 0 2.50
MDC Partners 0 4 3 0 2.43

OUTFRONT Media presently has a consensus price target of $30.17, suggesting a potential upside of 27.69%. MDC Partners has a consensus price target of $11.83, suggesting a potential upside of 35.24%. Given MDC Partners’ higher possible upside, analysts clearly believe MDC Partners is more favorable than OUTFRONT Media.

Profitability

This table compares OUTFRONT Media and MDC Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OUTFRONT Media 6.40% 7.77% 2.56%
MDC Partners -2.48% -3.65% 1.15%

Summary

OUTFRONT Media beats MDC Partners on 9 of the 14 factors compared between the two stocks.

About OUTFRONT Media

OUTFRONT Media Inc. is a real estate investment trust (REIT), which provides advertising space (displays) on out-of-home advertising structures and sites in the United States and Canada. The Company’s segments are U.S. Media and Other. The U.S. Media segment includes U.S. Billboard and Transit. The Other segment includes International and Sports Marketing. The Company’s inventory consists of billboard displays, which are primarily located on the heavily traveled highways and roadways in Nielsen Designated Market Areas (DMAs), and transit advertising displays operated under multi-year contracts with municipalities in cities across the United States and Canada. The Company also has marketing and multimedia rights agreements with colleges, universities and other educational institutions, which entitle the Company to operate on-campus advertising displays, as well as manage marketing opportunities, media rights and experiential entertainment at sports events.

About MDC Partners

MDC Partners Inc. is a provider of global marketing, advertising, activation, communications and strategic consulting solutions. The Company and its subsidiary agencies (Partner Firms) deliver a range of customized services. The Company’s segments include Reportable Segment, All Other and Corporate. The Reportable segment consists of the Company’s integrated advertising, media and public relations service companies. The All Other segment consists of the companies that provide the Company’s specialist marketing offerings, such as direct marketing, sales promotion, market research, strategic communications, database and customer relationship management, data analytics and insights, corporate identity, and design and branding. The Reportable segment includes the operations of various companies, such as Allison & Partners, Anomaly, Crispin Porter + Bogusky, Doner, Forsman & Bodenfors, Hunter PR, kbs, MDC Media Partners and 72andSunny.

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