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OUT vs. CCI: Which Stock Is the Better Value Option?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Outfront Media (OUT - Free Report) and Crown Castle (CCI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Outfront Media is sporting a Zacks Rank of #2 (Buy), while Crown Castle has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OUT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

OUT currently has a forward P/E ratio of 8.85, while CCI has a forward P/E of 13.74. We also note that OUT has a PEG ratio of 0.89. 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 2.41.

Another notable valuation metric for OUT is its P/B ratio of 4.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CCI has a P/B of 6.84.

These metrics, and several others, help OUT earn a Value grade of B, while CCI has been given a Value grade of D.

OUT stands above CCI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OUT is 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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