Critical Comparison: OUTFRONT Media (OUT) versus InfraREIT (HIFR)
OUTFRONT Media (NYSE: OUT) and InfraREIT (NYSE:HIFR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.0%. InfraREIT pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. 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. InfraREIT pays out 86.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent ratings and recommmendations for OUTFRONT Media and InfraREIT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OUTFRONT Media currently has a consensus target price of $30.17, suggesting a potential upside of 25.64%. InfraREIT has a consensus target price of $23.00, suggesting a potential upside of 8.29%. Given OUTFRONT Media’s higher probable upside, research analysts clearly believe OUTFRONT Media is more favorable than InfraREIT.
This table compares OUTFRONT Media and InfraREIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares OUTFRONT Media and InfraREIT’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|OUTFRONT Media||$1.51 billion||2.20||$90.90 million||$0.84||28.58|
|InfraREIT||$172.10 million||5.41||$49.95 million||$1.16||18.31|
OUTFRONT Media has higher revenue and earnings than InfraREIT. InfraREIT is trading at a lower price-to-earnings ratio than OUTFRONT Media, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
OUTFRONT Media has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, InfraREIT has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
Insider and Institutional Ownership
98.8% of OUTFRONT Media shares are owned by institutional investors. Comparatively, 84.8% of InfraREIT shares are owned by institutional investors. 0.5% of OUTFRONT Media shares are owned by insiders. Comparatively, 28.0% of InfraREIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
OUTFRONT Media beats InfraREIT on 8 of the 14 factors compared between the two stocks.
OUTFRONT Media Company Profile
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.
InfraREIT Company Profile
InfraREIT, Inc. is a real estate investment trust. The Company is engaged in owning and leasing rate-regulated transmission and distribution (T&D) assets in Texas. It leases its T&D assets to Sharyland Utilities, L.P. Its assets are located in the Texas Panhandle near Amarillo, the Permian Basin in and around Stanton, Central Texas around Brady, Northeast Texas in and around Celeste and South Texas near McAllen. As of December 31, 2016, its T&D assets consisted of approximately 54,000 electricity delivery points, approximately 815 circuit miles of transmission lines, approximately 40,500 circuit miles of distribution lines, 57 substations and a 300 megawatt high-voltage direct current (DC) Tie between Texas and Mexico (Railroad DC Tie). As of December 31, 2016, its T&D assets in each of its leases included S/B/C Lease, McAllen Lease, competitive renewable energy zone (CREZ) Lease, Stanton Transmission Loop Lease and Electric Reliability Council of Texas (ERCOT) Transmission Lease.
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