Analyzing Omnicom Group (NYSE:OMC) and Boston Omaha (NYSE:BOC)

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

Earnings and Valuation

This table compares Boston Omaha and Omnicom Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Omaha	$114.38 million	3.54	-$12.43 million	($0.42)	-32.02
Omnicom Group	$17.27 billion	1.19	-$54.50 million	$1.16	64.37

Boston Omaha has higher earnings, but lower revenue than Omnicom Group. Boston Omaha is trading at a lower price-to-earnings ratio than Omnicom Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

60.4% of Boston Omaha shares are held by institutional investors. Comparatively, 92.0% of Omnicom Group shares are held by institutional investors. 24.9% of Boston Omaha shares are held by insiders. Comparatively, 1.2% of Omnicom Group shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boston Omaha	-12.12%	-2.49%	-1.88%
Omnicom Group	1.74%	24.73%	5.15%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Boston Omaha and Omnicom Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Omaha	1	0	0	0	1.00
Omnicom Group	2	5	4	0	2.18

Omnicom Group has a consensus price target of $99.00, indicating a potential upside of 32.58%. Given Omnicom Group’s stronger consensus rating and higher possible upside, analysts plainly believe Omnicom Group is more favorable than Boston Omaha.

Risk & Volatility

Boston Omaha has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

Omnicom Group beats Boston Omaha on 10 of the 13 factors compared between the two stocks.

About Boston Omaha

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and asset management businesses. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.

About Omnicom Group

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, 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 and post-production, digital transformation consulting, entertainment marketing, experiential marketing, field marketing, sales support, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, retail 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, retail media and e-commerce, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.