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

Analyst Recommendations

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

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

Interpublic Group of Companies, Inc. (The) presently has a consensus price target of $26.92, indicating a potential upside of 8.75%. Given Interpublic Group of Companies, Inc. (The)’s higher probable upside, equities analysts clearly believe Interpublic Group of Companies, Inc. (The) is more favorable than Sizmek.

Volatility and Risk

Interpublic Group of Companies, Inc. (The) has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Sizmek has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Interpublic Group of Companies, Inc. (The) $7.86 billion 1.24 $1.11 billion $1.53 16.18
Sizmek N/A N/A N/A ($4.29) -0.91

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.

Insider & Institutional Ownership

98.6% of Interpublic Group of Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 41.6% of Sizmek shares are owned by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are owned by company insiders. Comparatively, 15.0% of Sizmek shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. 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.

Summary

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

About Interpublic Group of Companies, Inc. (The)

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.

About Sizmek

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.

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