Analyzing Douglas Emmett (NYSE:DEI) & OUTFRONT Media (NYSE:OUT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	3.77%	1.04%	0.40%
OUTFRONT Media	5.99%	18.07%	2.08%

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 6.0%. OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 7.0%. Douglas Emmett pays out 345.5% 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 206.9% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

97.4% of Douglas Emmett shares are held by institutional investors. 15.1% of Douglas Emmett shares are held by company insiders. Comparatively, 0.5% of OUTFRONT Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Douglas Emmett and OUTFRONT Media”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$986.48 million	2.16	$23.52 million	$0.22	57.89
OUTFRONT Media	$1.80 billion	1.60	$258.20 million	$0.58	29.70

OUTFRONT Media has higher revenue and earnings than Douglas Emmett. OUTFRONT Media is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Douglas Emmett has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Douglas Emmett and OUTFRONT Media, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	0	6	4	0	2.40
OUTFRONT Media	0	2	3	0	2.60

Douglas Emmett presently has a consensus price target of $18.25, indicating a potential upside of 43.29%. OUTFRONT Media has a consensus price target of $19.00, indicating a potential upside of 10.30%. Given Douglas Emmett’s higher possible upside, research analysts plainly believe Douglas Emmett is more favorable than OUTFRONT Media.

Summary

OUTFRONT Media beats Douglas Emmett on 10 of the 16 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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.