Contrasting OUTFRONT Media (NYSE:OUT) and Highwoods Properties (NYSE:HIW)

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

Insider and Institutional Ownership

96.3% of Highwoods Properties shares are held by institutional investors. 1.3% of Highwoods Properties shares are held by insiders. Comparatively, 0.5% of OUTFRONT Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 7.9%. OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Highwoods Properties pays out 238.1% 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 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Highwoods Properties	11.64%	3.97%	1.52%
OUTFRONT Media	9.98%	31.18%	3.57%

Valuation and Earnings

This table compares Highwoods Properties 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
Highwoods Properties	$806.11 million	3.48	$159.61 million	$0.84	30.26
OUTFRONT Media	$1.83 billion	3.26	$147.00 million	$0.80	42.36

Highwoods Properties has higher earnings, but lower revenue than OUTFRONT Media. Highwoods 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 breakdown of current recommendations for Highwoods Properties and OUTFRONT Media, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highwoods Properties	0	6	2	0	2.25
OUTFRONT Media	0	1	6	0	2.86

Highwoods Properties presently has a consensus target price of $27.67, indicating a potential upside of 8.86%. OUTFRONT Media has a consensus target price of $29.14, indicating a potential downside of 13.99%. Given Highwoods Properties’ higher probable upside, equities research analysts plainly believe Highwoods Properties is more favorable than OUTFRONT Media.

Volatility and Risk

Highwoods Properties has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

About Highwoods Properties

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.

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.