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

Insider & Institutional Ownership

83.7% of MDC Partners shares are held by institutional investors. Comparatively, 59.3% of shares of all “Advertising & Marketing” companies are held by institutional investors. 3.4% of MDC Partners shares are held by company insiders. Comparatively, 22.1% of shares of all “Advertising & Marketing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares MDC Partners and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MDC Partners $1.47 billion $150.77 million -19.82
MDC Partners Competitors $1.10 billion $149.96 million 19.85

MDC Partners has higher revenue and earnings than its peers. MDC Partners 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 summary of current ratings and recommmendations for MDC Partners and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MDC Partners 0 4 3 0 2.43
MDC Partners Competitors 42 416 873 16 2.64

MDC Partners currently has a consensus price target of $12.17, indicating a potential upside of 9.61%. As a group, “Advertising & Marketing” companies have a potential upside of 14.66%. Given MDC Partners’ peers stronger consensus rating and higher probable upside, analysts clearly believe MDC Partners has less favorable growth aspects than its peers.

Profitability

This table compares MDC Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MDC Partners -1.70% -5.72% 1.77%
MDC Partners Competitors -7.21% -10.09% -3.33%

Volatility and Risk

MDC Partners has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, MDC Partners’ peers have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.

Summary

MDC Partners beats its peers on 7 of the 12 factors compared.

About MDC Partners

MDC Partners Inc. is a provider of global marketing, advertising, activation, communications and strategic consulting solutions. The Company and its subsidiary agencies (Partner Firms) deliver a range of customized services. The Company’s segments include Reportable Segment, All Other and Corporate. The Reportable segment consists of the Company’s integrated advertising, media and public relations service companies. The All Other segment consists of the companies that provide the Company’s specialist marketing offerings, such as direct marketing, sales promotion, market research, strategic communications, database and customer relationship management, data analytics and insights, corporate identity, and design and branding. The Reportable segment includes the operations of various companies, such as Allison & Partners, Anomaly, Crispin Porter + Bogusky, Doner, Forsman & Bodenfors, Hunter PR, kbs, MDC Media Partners and 72andSunny.

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