OUTFRONT Media (NYSE: OUT) and Uniti Group (NASDAQ:UNIT) are both mid-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Institutional and Insider Ownership

70.0% of Uniti Group shares are held by institutional investors. 0.5% of OUTFRONT Media shares are held by company insiders. Comparatively, 0.4% of Uniti Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for OUTFRONT Media and Uniti Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OUTFRONT Media 0 2 4 0 2.67
Uniti Group 0 3 6 0 2.67

OUTFRONT Media presently has a consensus target price of $30.17, indicating a potential upside of 31.56%. Uniti Group has a consensus target price of $27.14, indicating a potential upside of 65.40%. Given Uniti Group’s higher probable upside, analysts plainly believe Uniti Group is more favorable than OUTFRONT Media.

Dividends

OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.3%. Uniti Group pays an annual dividend of $2.40 per share and has a dividend yield of 14.6%. OUTFRONT Media pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group pays out -774.2% of its earnings in the form of a dividend. Uniti Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
OUTFRONT Media 7.71% 9.57% 3.12%
Uniti Group -4.32% N/A -1.01%

Risk & Volatility

OUTFRONT Media has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares OUTFRONT Media and Uniti Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OUTFRONT Media $1.51 billion 2.10 $90.90 million $0.84 27.30
Uniti Group $770.41 million 3.74 -$210,000.00 ($0.31) -52.94

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

Summary

OUTFRONT Media beats Uniti Group on 8 of the 15 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.

Uniti Group Company Profile

Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.

Receive News & Stock 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 stocks with our FREE daily email newsletter.