Analyzing EPR Properties (NYSE:EPR) and OUTFRONT Media (NYSE:OUT)

OUTFRONT Media (NYSE:OUT) and EPR Properties (NYSE:EPR) are both mid-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares OUTFRONT Media and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OUTFRONT Media	12.66%	37.44%	4.65%
EPR Properties	35.45%	11.34%	4.58%

Risk & Volatility

OUTFRONT Media has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares OUTFRONT Media and EPR Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OUTFRONT Media	$1.93 billion	2.83	$147.00 million	$1.39	22.35
EPR Properties	$718.36 million	5.96	$274.94 million	$3.11	17.98

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

Analyst Ratings

This is a summary of recent ratings for OUTFRONT Media and EPR Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OUTFRONT Media	0	1	6	0	2.86
EPR Properties	0	5	8	0	2.62

OUTFRONT Media presently has a consensus price target of $34.00, indicating a potential upside of 9.42%. EPR Properties has a consensus price target of $65.65, indicating a potential upside of 17.39%. Given EPR Properties’ higher possible upside, analysts clearly believe EPR Properties is more favorable than OUTFRONT Media.

Institutional & Insider Ownership

74.7% of EPR Properties shares are held by institutional investors. 0.4% of OUTFRONT Media shares are held by insiders. Comparatively, 0.0% of EPR Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

OUTFRONT Media pays an annual dividend of $1.32 per share and has a dividend yield of 4.2%. EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.7%. OUTFRONT Media pays out 95.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

EPR Properties beats OUTFRONT Media on 9 of the 17 factors compared between the two stocks.

About OUTFRONT Media

OUTFRONT Media, Inc. leases advertising space on out-of-home advertising structures and sites. Its inventory consists of billboard displays, which are primarily located on the most heavily traveled highways & roadways, and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. It operates through the U.S. Media and other segments. The U.S. Media segment includes U.S. Billboard and Transit. The company was founded in 1938 and is headquartered in New York, NY.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.