Critical Comparison: OUTFRONT Media (NYSE:OUT) vs. Clear Channel Outdoor Holdings (CCO)
OUTFRONT Media (NYSE: OUT) and Clear Channel Outdoor Holdings (NYSE:CCO) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, institutional ownership, analyst recommendations, earnings and valuation.
This table compares OUTFRONT Media and Clear Channel Outdoor Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clear Channel Outdoor Holdings||-1.04%||-14.75%||-0.49%|
OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.4%. Clear Channel Outdoor Holdings does not pay a dividend. 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.
This is a breakdown of current ratings and recommmendations for OUTFRONT Media and Clear Channel Outdoor Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clear Channel Outdoor Holdings||0||3||0||0||2.00|
OUTFRONT Media presently has a consensus price target of $30.17, suggesting a potential upside of 34.19%. Clear Channel Outdoor Holdings has a consensus price target of $8.42, suggesting a potential upside of 93.49%. Given Clear Channel Outdoor Holdings’ higher probable upside, analysts clearly believe Clear Channel Outdoor Holdings is more favorable than OUTFRONT Media.
Insider & Institutional Ownership
9.2% of Clear Channel Outdoor Holdings shares are held by institutional investors. 0.4% of OUTFRONT Media shares are held by insiders. Comparatively, 4.4% of Clear Channel Outdoor Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
OUTFRONT Media has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Clear Channel Outdoor Holdings has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Earnings & Valuation
This table compares OUTFRONT Media and Clear Channel Outdoor Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|OUTFRONT Media||$1.50 billion||2.08||$390.70 million||$0.70||32.11|
|Clear Channel Outdoor Holdings||$2.66 billion||0.59||$629.65 million||($0.08)||-54.38|
Clear Channel Outdoor Holdings has higher revenue and earnings than OUTFRONT Media. Clear Channel Outdoor Holdings is trading at a lower price-to-earnings ratio than OUTFRONT Media, indicating that it is currently the more affordable of the two stocks.
OUTFRONT Media beats Clear Channel Outdoor Holdings on 8 of the 15 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 Clear Channel Outdoor Holdings
Clear Channel Outdoor Holdings, Inc. is an outdoor advertising company. The Company provides clients with advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays, such as wallscapes and spectaculars. Its segments include Americas outdoor advertising (Americas) and International outdoor advertising (International). The Americas segment consists of operations primarily in the United States, Canada and Latin America. Its Americas assets consist of printed and digital billboards, street furniture and transit displays, airport displays and wallscapes and other spectaculars, which the Company owns or operates under lease management agreements. International segment primarily includes operations in Europe and Asia. The International assets consist of street furniture and transit displays, billboards, mall displays, Smartbike programs, and other spectaculars, which the Company owns or operates under lease agreements.
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