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OUT or CCI: Which Is the Better Value Stock Right Now?

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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 Crown Castle (CCI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Outfront Media has a Zacks Rank of #1 (Strong Buy), while Crown Castle has a Zacks Rank of #3 (Hold) right now. 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 just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OUT currently has a forward P/E ratio of 7.99, while CCI has a forward P/E of 15.51. We also note that OUT has a PEG ratio of 0.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CCI currently has a PEG ratio of 2.72.

Another notable valuation metric for OUT is its P/B ratio of 3.73. 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, CCI has a P/B of 7.02.

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

OUT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OUT is likely the superior value option right now.


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Crown Castle Inc. (CCI) - free report >>

OUTFRONT Media Inc. (OUT) - free report >>

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