National CineMedia (NASDAQ:NCMI – Get Free Report) and Publicis Groupe (OTCMKTS:PUBGY – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Earnings and Valuation
This table compares National CineMedia and Publicis Groupe”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National CineMedia | $243.20 million | 1.37 | -$10.60 million | ($0.09) | -39.44 |
| Publicis Groupe | $19.68 billion | 1.32 | $1.87 billion | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for National CineMedia and Publicis Groupe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National CineMedia | 1 | 2 | 3 | 0 | 2.33 |
| Publicis Groupe | 0 | 1 | 0 | 2 | 3.33 |
National CineMedia currently has a consensus target price of $5.38, indicating a potential upside of 51.41%. Given National CineMedia’s higher probable upside, equities research analysts plainly believe National CineMedia is more favorable than Publicis Groupe.
Volatility & Risk
National CineMedia has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Publicis Groupe has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Dividends
National CineMedia pays an annual dividend of $0.12 per share and has a dividend yield of 3.4%. Publicis Groupe pays an annual dividend of $0.78 per share and has a dividend yield of 3.0%. National CineMedia pays out -133.3% of its earnings in the form of a dividend.
Profitability
This table compares National CineMedia and Publicis Groupe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National CineMedia | -3.47% | -1.80% | -1.37% |
| Publicis Groupe | N/A | N/A | N/A |
Insider & Institutional Ownership
69.5% of National CineMedia shares are owned by institutional investors. Comparatively, 0.1% of Publicis Groupe shares are owned by institutional investors. 1.7% of National CineMedia shares are owned by insiders. Comparatively, 1.0% of Publicis Groupe shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
National CineMedia beats Publicis Groupe on 8 of the 15 factors compared between the two stocks.
About National CineMedia
National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.
About Publicis Groupe
Publicis Groupe S.A. provides marketing, communications, and digital business transformation services in North America, Europe, the Asia Pacific, Latin America, Africa, and the Middle East. The company offers advisory services for brand strategy, and repositioning and their identity under the Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, Marcel, Fallon, and BBH brands; online advertising services under the Razorfish and Moxie brand names; crisis communications, press relations, public affairs, institutional relations, financial communications, and strategy management services; media consulting, planning, and buying services; performance marketing services; and e-commerce services. It also designs and delivers brand content for various channels, such as television, print, radio, cinema, and billboards, as well as digital, including display and social networks under the Prodigious, Harbor, and The Pub brand names. In addition, the company operates Epsilon PeopleCloud, a unified data and technology platform; and Publicis Sapient, a technological, digital, and consulting platform. Further, it provides healthcare communication services under the Digitas Health, Publicis Health Media, and Saatchi & Saatchi Wellness brands for the healthcare and well-being sectors. It serves clients in the automotive, retail, financial services, consumer products, and media sectors. Publicis Groupe S.A. was founded in 1926 and is headquartered in Paris, France.
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