OUTFRONT Media (NYSE: OUT) and American Tower Corporation (REIT) (NYSE:AMT) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares OUTFRONT Media and American Tower Corporation (REIT)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OUTFRONT Media 6.92% 8.52% 2.79%
American Tower Corporation (REIT) 18.63% 16.98% 3.80%

Dividends

OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.2%. American Tower Corporation (REIT) pays an annual dividend of $2.64 per share and has a dividend yield of 1.9%. OUTFRONT Media pays out 189.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower Corporation (REIT) pays out 100.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OUTFRONT Media has raised its dividend for 5 consecutive years. OUTFRONT Media is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

OUTFRONT Media has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, American Tower Corporation (REIT) has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares OUTFRONT Media and American Tower Corporation (REIT)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
OUTFRONT Media $1.51 billion 2.13 $90.90 million $0.76 30.66
American Tower Corporation (REIT) $5.79 billion 10.53 $956.42 million $2.63 54.03

American Tower Corporation (REIT) has higher revenue and earnings than OUTFRONT Media. OUTFRONT Media is trading at a lower price-to-earnings ratio than American Tower Corporation (REIT), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.1% of American Tower Corporation (REIT) shares are owned by institutional investors. 0.5% of OUTFRONT Media shares are owned by company insiders. Comparatively, 0.9% of American Tower Corporation (REIT) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for OUTFRONT Media and American Tower Corporation (REIT), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OUTFRONT Media 0 2 4 0 2.67
American Tower Corporation (REIT) 0 0 12 0 3.00

OUTFRONT Media currently has a consensus target price of $30.17, suggesting a potential upside of 29.47%. American Tower Corporation (REIT) has a consensus target price of $153.00, suggesting a potential upside of 7.67%. Given OUTFRONT Media’s higher possible upside, research analysts plainly believe OUTFRONT Media is more favorable than American Tower Corporation (REIT).

Summary

American Tower Corporation (REIT) beats OUTFRONT Media on 13 of the 17 factors compared between the two stocks.

OUTFRONT Media Company Profile

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.

American Tower Corporation (REIT) Company Profile

American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

Receive News & Ratings for OUTFRONT Media Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OUTFRONT Media Inc. and related companies with MarketBeat.com's FREE daily email newsletter.