CyrusOne (NASDAQ: CONE) and OUTFRONT Media (NYSE:OUT) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Dividends

CyrusOne pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.2%. CyrusOne pays out -173.2% of its earnings in the form of a dividend. 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.

Volatility and Risk

CyrusOne has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares CyrusOne and OUTFRONT Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CyrusOne $529.10 million 10.70 $19.90 million ($0.97) -63.92
OUTFRONT Media $1.51 billion 2.13 $90.90 million $0.76 30.66

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

Institutional & Insider Ownership

97.2% of CyrusOne shares are owned by institutional investors. 1.6% of CyrusOne shares are owned by company insiders. Comparatively, 0.5% of OUTFRONT Media shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CyrusOne and OUTFRONT Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyrusOne -13.60% -3.23% -1.21%
OUTFRONT Media 6.92% 8.52% 2.79%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CyrusOne and OUTFRONT Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyrusOne 1 1 12 0 2.79
OUTFRONT Media 0 2 4 0 2.67

CyrusOne currently has a consensus price target of $61.50, indicating a potential downside of 0.81%. OUTFRONT Media has a consensus price target of $30.17, indicating a potential upside of 29.47%. Given OUTFRONT Media’s higher probable upside, analysts clearly believe OUTFRONT Media is more favorable than CyrusOne.

Summary

OUTFRONT Media beats CyrusOne on 9 of the 16 factors compared between the two stocks.

About CyrusOne

CyrusOne Inc. is a real estate investment trust. The Company is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant data center properties. The Company’s data centers are generally purpose-built facilities with redundant power and cooling. The CyrusOne National IX Platform (the National IX Platform) delivers interconnection across states and between metro-enabled sites within its footprint and beyond. The Company has data centers in the United States, London and Singapore. As of December 31, 2016, the Company provided mission-critical data center facilities for 932 customers in 35 data centers and two recovery centers in 11 distinct markets (nine cities in the United States, London and Singapore) with approximately 3,904,000 net rentable square feet (NRSF). The Company provides round the clock security guard monitoring with customizable security features. As of December 31, 2016, the Company had approximately 1,657,000 NRSF under development.

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.

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