SL Green Realty (NYSE:SLG – Get Free Report) and OUTFRONT Media (NYSE:OUT – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Profitability
This table compares SL Green Realty and OUTFRONT Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SL Green Realty | -15.77% | -4.06% | -1.42% |
| OUTFRONT Media | 9.98% | 30.36% | 3.57% |
Risk & Volatility
SL Green Realty has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SL Green Realty | 2 | 9 | 8 | 0 | 2.32 |
| OUTFRONT Media | 0 | 1 | 6 | 0 | 2.86 |
SL Green Realty presently has a consensus target price of $50.90, suggesting a potential downside of 2.18%. OUTFRONT Media has a consensus target price of $30.71, suggesting a potential downside of 7.39%. Given SL Green Realty’s higher probable upside, equities research analysts plainly believe SL Green Realty is more favorable than OUTFRONT Media.
Valuation & Earnings
This table compares SL Green Realty and OUTFRONT Media”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SL Green Realty | $1.00 billion | 3.71 | -$88.28 million | ($2.51) | -20.73 |
| OUTFRONT Media | $1.83 billion | 3.19 | $147.00 million | $1.05 | 31.59 |
OUTFRONT Media has higher revenue and earnings than SL Green Realty. SL Green Realty is trading at a lower price-to-earnings ratio than OUTFRONT Media, indicating that it is currently the more affordable of the two stocks.
Dividends
SL Green Realty pays an annual dividend of $2.47 per share and has a dividend yield of 4.7%. OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. SL Green Realty pays out -98.4% of its earnings in the form of a dividend. 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. SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
90.0% of SL Green Realty shares are owned by institutional investors. 5.0% of SL Green Realty shares are owned by company insiders. Comparatively, 0.5% of OUTFRONT Media shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
SL Green Realty beats OUTFRONT Media on 9 of the 17 factors compared between the two stocks.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
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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