OUTFRONT Media (NYSE:OUT) versus Diversified Healthcare Trust (NASDAQ:DHC) Head-To-Head Contrast

OUTFRONT Media (NYSE:OUT) and Diversified Healthcare Trust (NASDAQ:DHC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Volatility and Risk

OUTFRONT Media has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.

Dividends

OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 7.2%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.3%. OUTFRONT Media pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.3% of its earnings in the form of a dividend.

Profitability

This table compares OUTFRONT Media and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OUTFRONT Media	13.30%	40.33%	4.54%
Diversified Healthcare Trust	-26.09%	-17.55%	-7.20%

Valuation and Earnings

This table compares OUTFRONT Media and Diversified Healthcare Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OUTFRONT Media	$1.81 billion	1.53	-$430.40 million	$1.52	10.90
Diversified Healthcare Trust	$1.51 billion	0.50	-$293.57 million	($1.22)	-2.59

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

Institutional & Insider Ownership

76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 1.2% of OUTFRONT Media shares are owned by insiders. Comparatively, 10.1% of Diversified Healthcare Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for OUTFRONT Media and Diversified Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OUTFRONT Media	0	4	3	0	2.43
Diversified Healthcare Trust	1	1	0	1	2.33

OUTFRONT Media presently has a consensus price target of $18.23, indicating a potential upside of 10.04%. Diversified Healthcare Trust has a consensus price target of $3.75, indicating a potential upside of 18.67%. Given Diversified Healthcare Trust’s higher probable upside, analysts clearly believe Diversified Healthcare Trust is more favorable than OUTFRONT Media.

Summary

OUTFRONT Media beats Diversified Healthcare Trust on 10 of the 17 factors compared between the two stocks.

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.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.