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

Earnings & Valuation

This table compares Interpublic Group of Companies, Inc. (The) and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Interpublic Group of Companies, Inc. (The) $7.83 billion $1.09 billion 14.84
Interpublic Group of Companies, Inc. (The) Competitors $1.17 billion $157.21 million 19.26

Interpublic Group of Companies, Inc. (The) has higher revenue and earnings than its rivals. Interpublic Group of Companies, Inc. (The) is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Interpublic Group of Companies, Inc. (The) pays out 51.8% 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 45.6% of their earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has raised its dividend for 4 consecutive years.

Insider and Institutional Ownership

97.8% of Interpublic Group of Companies, Inc. (The) shares are held by institutional investors. Comparatively, 59.1% of shares of all “Advertising & Marketing” companies are held by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are held by insiders. Comparatively, 22.7% 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 is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Interpublic Group of Companies, Inc. (The) 7.19% 27.72% 4.67%
Interpublic Group of Companies, Inc. (The) Competitors -11.32% -10.81% -4.11%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Interpublic Group of Companies, Inc. (The) and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpublic Group of Companies, Inc. (The) 2 4 11 0 2.53
Interpublic Group of Companies, Inc. (The) Competitors 47 426 880 16 2.63

Interpublic Group of Companies, Inc. (The) presently has a consensus price target of $25.85, indicating a potential upside of 25.28%. As a group, “Advertising & Marketing” companies have a potential upside of 12.21%. Given Interpublic Group of Companies, Inc. (The)’s higher possible upside, equities research analysts plainly believe Interpublic Group of Companies, Inc. (The) is more favorable than its rivals.

Volatility and Risk

Interpublic Group of Companies, Inc. (The) has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Interpublic Group of Companies, Inc. (The)’s rivals have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.

Summary

Interpublic Group of Companies, Inc. (The) beats its rivals on 10 of the 15 factors compared.

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.

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