Financial Analysis: OUTFRONT Media (OUT) vs. Farmland Partners (FPI)
OUTFRONT Media (NYSE: OUT) and Farmland Partners (NYSE:FPI) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
This table compares OUTFRONT Media and Farmland Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
OUTFRONT Media has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.
Institutional & Insider Ownership
41.0% of Farmland Partners shares are owned by institutional investors. 0.5% of OUTFRONT Media shares are owned by company insiders. Comparatively, 2.8% of Farmland Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.1%. Farmland Partners pays an annual dividend of $0.51 per share and has a dividend yield of 5.6%. 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. Farmland Partners pays out 268.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OUTFRONT Media has increased its dividend for 2 consecutive years. OUTFRONT Media is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for OUTFRONT Media and Farmland Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OUTFRONT Media presently has a consensus price target of $30.17, suggesting a potential upside of 28.81%. Farmland Partners has a consensus price target of $9.95, suggesting a potential upside of 9.34%. Given OUTFRONT Media’s stronger consensus rating and higher probable upside, equities research analysts plainly believe OUTFRONT Media is more favorable than Farmland Partners.
Earnings and Valuation
This table compares OUTFRONT Media and Farmland Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OUTFRONT Media||$1.51 billion||2.14||$90.90 million||$0.84||27.88|
|Farmland Partners||$31.00 million||9.49||$4.30 million||$0.19||47.90|
OUTFRONT Media has higher revenue and earnings than Farmland Partners. OUTFRONT Media is trading at a lower price-to-earnings ratio than Farmland Partners, indicating that it is currently the more affordable of the two stocks.
OUTFRONT Media beats Farmland Partners on 12 of the 17 factors compared between the two stocks.
About OUTFRONT Media
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.
About Farmland Partners
Farmland Partners, Inc. is an internally managed real estate company. The Company owns and seeks to acquire farmland located in agricultural markets throughout North America. The Company is the sole member of the general partner of Farmland Partners Operating Partnership, LP (the Operating Partnership). All of the Company’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and the subsidiaries of the Operating Partnership. The Company’s principal investment focus is on farmland located in agricultural markets throughout North America, however, it may seek to acquire farmland outside of North America. It also may acquire properties related to farming, such as grain storage facilities, grain elevators, feedlots, cold storage facilities, processing plants and distribution centers, as well as livestock farms or ranches. As of December 31, 2016, the Company owned approximately 115,489 acres, as well as eight grain storage facilities.
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