Financial Analysis: S4 Capital (OTCMKTS:SCPPF) and Omnicom Group (OTCMKTS:OMC)

S4 Capital (OTCMKTS:SCPPF) and Omnicom Group (NYSE:OMC) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for S4 Capital and Omnicom Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
S4 Capital 0 0 1 0 3.00
Omnicom Group 1 4 2 0 2.14

Omnicom Group has a consensus target price of $71.57, suggesting a potential upside of 31.08%. Given Omnicom Group’s higher possible upside, analysts clearly believe Omnicom Group is more favorable than S4 Capital.

Profitability

This table compares S4 Capital and Omnicom Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
S4 Capital N/A N/A N/A
Omnicom Group 8.96% 43.58% 5.38%

Institutional and Insider Ownership

99.4% of Omnicom Group shares are owned by institutional investors. 1.1% of Omnicom Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares S4 Capital and Omnicom Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
S4 Capital N/A N/A N/A N/A N/A
Omnicom Group $14.95 billion 0.78 $1.34 billion $6.06 9.01

Omnicom Group has higher revenue and earnings than S4 Capital.

Summary

Omnicom Group beats S4 Capital on 8 of the 9 factors compared between the two stocks.

S4 Capital Company Profile

S4 Capital plc, together with its subsidiaries, operates as a digital advertising and marketing services company in the Americas, Europe, the Middle East, and the Asia Pacific. It operates through Assets at Scale, Platform and E-Commerce, Creative Content and Innovation, and Media Planning and Buying segments. The Assets at Scale segment creates dynamic and data-driven content for global brands. The Platform and E-Commerce segment designs and develops branded e-commerce and apps. The Creative Content and Innovation segment produces digital content and films using and adapting the latest technology and trends, such as artificial intelligence, voice, augmented reality, and virtual reality. The Media Planning and Buying segment offers campaign management analytics, creative production and ad serving, and training and education, as well as platform and systems integration and transition services. The company is based in London, the United Kingdom.

Omnicom Group Company Profile

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, retail marketing, sales support, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in North America, Latin America, Europe, the Middle East, Africa, Australia, China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. The company has a strategic partnership with GRYT Health to use real-world data to develop solutions that reflect patient values and preferences. The company was incorporated in 1944 and is based in New York, New York.

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