Sizmek (NASDAQ: SZMK) and Interpublic Group of Companies, Inc. (The) (NYSE:IPG) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitabiliy, dividends and earnings.

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. Sizmek does not pay a dividend. Interpublic Group of Companies, Inc. (The) pays out 47.1% of its earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has increased its dividend for 4 consecutive years.

Profitability

This table compares Sizmek and Interpublic Group of Companies, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sizmek -2.13% -3.56% -2.52%
Interpublic Group of Companies, Inc. (The) 7.95% 29.00% 4.90%

Insider & Institutional Ownership

41.6% of Sizmek shares are owned by institutional investors. Comparatively, 98.9% of Interpublic Group of Companies, Inc. (The) shares are owned by institutional investors. 15.0% of Sizmek shares are owned by insiders. Comparatively, 1.5% of Interpublic Group of Companies, Inc. (The) 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.

Valuation and Earnings

This table compares Sizmek and Interpublic Group of Companies, Inc. (The)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sizmek N/A N/A N/A ($4.29) -0.91
Interpublic Group of Companies, Inc. (The) $7.86 billion 1.23 $1.11 billion $1.53 15.93

Interpublic Group of Companies, Inc. (The) has higher revenue and earnings than Sizmek. Sizmek is trading at a lower price-to-earnings ratio than Interpublic Group of Companies, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sizmek has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Interpublic Group of Companies, Inc. (The) has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sizmek and Interpublic Group of Companies, Inc. (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sizmek 0 0 0 0 N/A
Interpublic Group of Companies, Inc. (The) 1 4 9 0 2.57

Interpublic Group of Companies, Inc. (The) has a consensus target price of $26.92, suggesting a potential upside of 10.45%. Given Interpublic Group of Companies, Inc. (The)’s higher probable upside, analysts plainly believe Interpublic Group of Companies, Inc. (The) is more favorable than Sizmek.

Summary

Interpublic Group of Companies, Inc. (The) beats Sizmek on 11 of the 13 factors compared between the two stocks.

Sizmek Company Profile

Sizmek Inc. (Sizmek) is an open ad management company. The Company operates an independent online advertisement campaign management and distribution platform. The Company helps advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, video and social). It connects approximately 19,000 advertisers and 3,700 agencies to audiences in over 60 countries. Its online campaign management platform, Sizmek MDX, helps advertisers, agencies and publishers in managing their advertising budgets across multiple online media channels and formats, such as desktop, mobile, rich media, social media, in-stream video, interactive video, display and search. The Sizmek MDX platform provides its customers with an end-to-end solution in planning, creative, delivery, measurement and optimization of online media campaigns. Its solutions are delivered through a technology platform that allows delivery of global online media advertising campaigns.

Interpublic Group of Companies, Inc. (The) Company Profile

The Interpublic Group of Companies, Inc. is a global advertising and marketing services company. The Company specializes in consumer advertising, digital marketing, communications planning and media buying, public relations and specialized communications disciplines. It operates in two segments: Integrated Agency Networks (IAN) and Constituency Management Group (CMG). Its agencies offer customized marketing programs for clients that range in scale from global marketers to regional and local clients. IAN consists of McCann Worldgroup, FCB, MullenLowe Group, IPG Mediabrands, its digital specialist agencies and its domestic integrated agencies. CMG consists of its specialist marketing services offerings. It has three global networks: McCann Worldgroup, Foote, Cone & Belding and MullenLowe Group, which provide integrated, advertising and marketing solutions for clients. Its global media services companies include UM and Initiative, which operate under the IPG Mediabrands umbrella.

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