Pennsylvania R.E.I.T. (NYSE:PEI) and Outfront Media (NYSE:OUT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk and Volatility

Pennsylvania R.E.I.T. has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Outfront Media has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pennsylvania R.E.I.T. and Outfront Media’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pennsylvania R.E.I.T. $336.79 million 0.24 -$10.87 million $1.05 0.96
Outfront Media $1.78 billion 1.02 $140.10 million $2.33 5.41

Outfront Media has higher revenue and earnings than Pennsylvania R.E.I.T.. Pennsylvania R.E.I.T. is trading at a lower price-to-earnings ratio than Outfront Media, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pennsylvania R.E.I.T. and Outfront Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pennsylvania R.E.I.T. -3.23% -2.35% -0.46%
Outfront Media 7.80% 12.41% 2.57%

Dividends

Pennsylvania R.E.I.T. pays an annual dividend of $0.84 per share and has a dividend yield of 83.2%. Outfront Media pays an annual dividend of $1.52 per share and has a dividend yield of 12.1%. Pennsylvania R.E.I.T. pays out 80.0% 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 pays out 65.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pennsylvania R.E.I.T. and Outfront Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pennsylvania R.E.I.T. 3 0 0 0 1.00
Outfront Media 0 2 4 0 2.67

Pennsylvania R.E.I.T. presently has a consensus price target of $2.40, indicating a potential upside of 137.62%. Outfront Media has a consensus price target of $17.50, indicating a potential upside of 38.89%. Given Pennsylvania R.E.I.T.’s higher possible upside, research analysts clearly believe Pennsylvania R.E.I.T. is more favorable than Outfront Media.

Institutional & Insider Ownership

65.9% of Pennsylvania R.E.I.T. shares are held by institutional investors. Comparatively, 94.7% of Outfront Media shares are held by institutional investors. 3.3% of Pennsylvania R.E.I.T. shares are held by insiders. Comparatively, 0.7% of Outfront Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Outfront Media beats Pennsylvania R.E.I.T. on 12 of the 16 factors compared between the two stocks.

Pennsylvania R.E.I.T. Company Profile

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures.

Outfront Media Company Profile

OUTFRONT leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its ON Smart Media platform, OUTFRONT is implementing digital technology that will fundamentally change the ways advertisers engage audiences on-the-go.

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