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

Insider and Institutional Ownership

96.3% of Outfront Media shares are owned by institutional investors. Comparatively, 96.0% of First Industrial Realty Trust shares are owned by institutional investors. 0.8% of Outfront Media shares are owned by insiders. Comparatively, 1.3% of First Industrial Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Outfront Media has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Outfront Media and First Industrial Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Outfront Media 0 2 4 0 2.67
First Industrial Realty Trust 0 2 3 0 2.60

Outfront Media presently has a consensus price target of $18.67, suggesting a potential upside of 34.29%. First Industrial Realty Trust has a consensus price target of $33.90, suggesting a potential downside of 11.65%. Given Outfront Media’s stronger consensus rating and higher probable upside, analysts clearly believe Outfront Media is more favorable than First Industrial Realty Trust.

Valuation and Earnings

This table compares Outfront Media and First Industrial Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Outfront Media $1.78 billion 1.13 $140.10 million $2.33 5.97
First Industrial Realty Trust $425.98 million 11.46 $238.77 million $1.74 22.05

First Industrial Realty Trust has lower revenue, but higher earnings than Outfront Media. Outfront Media is trading at a lower price-to-earnings ratio than First Industrial Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Outfront Media and First Industrial Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Outfront Media 7.80% 12.61% 2.53%
First Industrial Realty Trust 59.20% 14.63% 7.40%

Dividends

Outfront Media pays an annual dividend of $1.52 per share and has a dividend yield of 10.9%. First Industrial Realty Trust pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Outfront Media pays out 65.2% of its earnings in the form of a dividend. First Industrial Realty Trust pays out 57.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First Industrial Realty Trust has raised its dividend for 6 consecutive years.

Summary

First Industrial Realty Trust beats Outfront Media on 9 of the 17 factors compared between the two stocks.

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.

First Industrial Realty Trust Company Profile

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 67.1 million square feet of industrial space as of March 31, 2019.

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