Omnicom Group (NYSE: OMC) is one of 37 public companies in the “Advertising & Marketing” industry, but how does it weigh in compared to its peers? We will compare Omnicom Group to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Omnicom Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omnicom Group 7.61% 42.54% 5.22%
Omnicom Group Competitors -6.40% -9.08% -2.78%

Insider & Institutional Ownership

98.6% of Omnicom Group shares are held by institutional investors. Comparatively, 57.8% of shares of all “Advertising & Marketing” companies are held by institutional investors. 1.1% of Omnicom Group shares are held by insiders. Comparatively, 21.0% of shares of all “Advertising & Marketing” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. Omnicom Group pays out 44.4% of its earnings in the form of a dividend. As a group, “Advertising & Marketing” companies pay a dividend yield of 3.1% and pay out 46.1% of their earnings in the form of a dividend. Omnicom Group has increased its dividend for 7 consecutive years.

Volatility and Risk

Omnicom Group has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Omnicom Group’s peers have a beta of 1.04, suggesting that their average stock price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares Omnicom Group and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Omnicom Group $15.41 billion $2.32 billion 14.70
Omnicom Group Competitors $1.10 billion $145.37 million 16.89

Omnicom Group has higher revenue and earnings than its peers. Omnicom Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Omnicom Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicom Group 1 12 1 0 2.00
Omnicom Group Competitors 81 541 934 17 2.56

Omnicom Group presently has a consensus target price of $85.33, suggesting a potential upside of 17.30%. As a group, “Advertising & Marketing” companies have a potential upside of 19.20%. Given Omnicom Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Omnicom Group has less favorable growth aspects than its peers.

Summary

Omnicom Group beats its peers on 8 of the 15 factors compared.

About Omnicom Group

Omnicom Group Inc. is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications. The Company caters to various industry sectors, such as food and beverage, consumer products, pharmaceuticals and healthcare, financial services, technology, travel and entertainment, telecommunications and retail. The Company’s branded networks and agencies conduct business on a global basis and operate in the geographic regions, such as The Americas, which includes North America and Latin America; EMEA, which includes Europe, the Middle East and Africa, and Asia Pacific, which includes Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries.

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