NNN REIT (NYSE:NNN – Get Free Report) and OUTFRONT Media (NYSE:OUT – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Dividends
NNN REIT pays an annual dividend of $2.40 per share and has a dividend yield of 5.2%. OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 3.8%. NNN REIT pays out 116.5% 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 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has raised its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
90.0% of NNN REIT shares are held by institutional investors. 0.9% of NNN REIT 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NNN REIT | 41.38% | 8.81% | 4.14% |
| OUTFRONT Media | 9.98% | 30.36% | 3.57% |
Analyst Ratings
This is a breakdown of recent recommendations for NNN REIT and OUTFRONT Media, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NNN REIT | 2 | 8 | 3 | 0 | 2.08 |
| OUTFRONT Media | 0 | 1 | 6 | 0 | 2.86 |
NNN REIT currently has a consensus target price of $45.65, indicating a potential downside of 1.47%. OUTFRONT Media has a consensus target price of $30.71, indicating a potential downside of 2.48%. Given NNN REIT’s higher probable upside, analysts plainly believe NNN REIT is more favorable than OUTFRONT Media.
Risk and Volatility
NNN REIT has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Earnings & Valuation
This table compares NNN REIT and OUTFRONT Media”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NNN REIT | $926.21 million | 9.52 | $389.78 million | $2.06 | 22.49 |
| OUTFRONT Media | $1.87 billion | 2.96 | $147.00 million | $1.05 | 30.00 |
NNN REIT has higher earnings, but lower revenue than OUTFRONT Media. NNN REIT is trading at a lower price-to-earnings ratio than OUTFRONT Media, indicating that it is currently the more affordable of the two stocks.
Summary
NNN REIT beats OUTFRONT Media on 10 of the 17 factors compared between the two stocks.
About NNN REIT
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.
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.
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