Head-To-Head Analysis: Communications Sales & Leasing,Inc. (UNIT) vs. OUTFRONT Media (OUT)

Communications Sales & Leasing,Inc. (NASDAQ: UNIT) and OUTFRONT Media (NYSE:OUT) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Communications Sales & Leasing,Inc. has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Dividends

Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 14.8%. OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.0%. Communications Sales & Leasing,Inc. pays out -774.2% of its earnings in the form of a dividend. 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. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Communications Sales & Leasing,Inc. and OUTFRONT Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Communications Sales & Leasing,Inc. -4.32% N/A -1.01%
OUTFRONT Media 7.71% 9.57% 3.12%

Earnings & Valuation

This table compares Communications Sales & Leasing,Inc. and OUTFRONT Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Communications Sales & Leasing,Inc. $770.41 million 3.70 -$210,000.00 ($0.31) -52.45
OUTFRONT Media $1.51 billion 2.21 $90.90 million $0.84 28.77

OUTFRONT Media has higher revenue and earnings than Communications Sales & Leasing,Inc.. Communications Sales & Leasing,Inc. 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 Recommendations

This is a breakdown of recent ratings and recommmendations for Communications Sales & Leasing,Inc. and OUTFRONT Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Communications Sales & Leasing,Inc. 0 3 6 0 2.67
OUTFRONT Media 0 2 4 0 2.67

Communications Sales & Leasing,Inc. currently has a consensus price target of $27.14, suggesting a potential upside of 66.93%. OUTFRONT Media has a consensus price target of $30.17, suggesting a potential upside of 24.81%. Given Communications Sales & Leasing,Inc.’s higher possible upside, analysts plainly believe Communications Sales & Leasing,Inc. is more favorable than OUTFRONT Media.

Institutional & Insider Ownership

67.4% of Communications Sales & Leasing,Inc. shares are owned by institutional investors. Comparatively, 99.4% of OUTFRONT Media shares are owned by institutional investors. 0.4% of Communications Sales & Leasing,Inc. shares are owned by insiders. Comparatively, 0.5% of OUTFRONT Media shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

OUTFRONT Media beats Communications Sales & Leasing,Inc. on 9 of the 15 factors compared between the two stocks.

About Communications Sales & Leasing,Inc.

Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.

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.

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