OUT vs. LSI: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Outfront Media (OUT) or Life Storage (LSI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Outfront Media has a Zacks Rank of #2 (Buy), while Life Storage has a Zacks Rank of #3 (Hold) right now. This means that OUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OUT currently has a forward P/E ratio of 8.16, while LSI has a forward P/E of 18.68. We also note that OUT has a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LSI currently has a PEG ratio of 5.15.
Another notable valuation metric for OUT is its P/B ratio of 2.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LSI has a P/B of 2.81.
These are just a few of the metrics contributing to OUT's Value grade of B and LSI's Value grade of D.
OUT stands above LSI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OUT is the superior value option right now.
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OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report
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