Financial Analysis: WPP plc American Depositary Shares (WPP) & Generation Next Franchise Brands (VEND)
WPP plc American Depositary Shares (NYSE: WPP) and Generation Next Franchise Brands (OTCMKTS:VEND) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
This table compares WPP plc American Depositary Shares and Generation Next Franchise Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WPP plc American Depositary Shares||N/A||N/A||N/A|
|Generation Next Franchise Brands||-491.23%||N/A||-76.32%|
4.2% of WPP plc American Depositary Shares shares are owned by institutional investors. 17.9% of WPP plc American Depositary Shares shares are owned by company insiders. Comparatively, 62.6% of Generation Next Franchise Brands shares are owned 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.
This is a breakdown of current ratings and recommmendations for WPP plc American Depositary Shares and Generation Next Franchise Brands, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WPP plc American Depositary Shares||1||3||3||0||2.29|
|Generation Next Franchise Brands||0||0||1||0||3.00|
WPP plc American Depositary Shares presently has a consensus target price of $130.00, indicating a potential upside of 39.46%. Generation Next Franchise Brands has a consensus target price of $1.50, indicating a potential upside of 66.67%. Given Generation Next Franchise Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Generation Next Franchise Brands is more favorable than WPP plc American Depositary Shares.
Volatility & Risk
WPP plc American Depositary Shares has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Generation Next Franchise Brands has a beta of -3.29, meaning that its stock price is 429% less volatile than the S&P 500.
WPP plc American Depositary Shares pays an annual dividend of $3.85 per share and has a dividend yield of 4.1%. Generation Next Franchise Brands does not pay a dividend.
Valuation & Earnings
This table compares WPP plc American Depositary Shares and Generation Next Franchise Brands’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WPP plc American Depositary Shares||$19.51 billion||1.21||$1.90 billion||N/A||N/A|
|Generation Next Franchise Brands||$4.27 million||8.21||-$11.26 million||($0.42)||-2.14|
WPP plc American Depositary Shares has higher revenue and earnings than Generation Next Franchise Brands.
WPP plc American Depositary Shares beats Generation Next Franchise Brands on 8 of the 12 factors compared between the two stocks.
WPP plc American Depositary Shares Company Profile
WPP PLC is a parent company that, through its subsidiaries, is engaged in the provision of communications and marketing services worldwide. The Company has four segments: Advertising and Media Investment Management; Consumer Insight (formerly Information, Insight & Consultancy); Public Relations & Public Affairs, and Branding & Identity, Healthcare and Specialist Communications, which includes WPP Digital and direct, digital, promotional and relationship marketing. It comprises companies in disciplines, such as advertising, media investment management, consumer insight, public relations and public affairs, branding and identity, healthcare communications, specialist communications, and direct, digital, promotion and relationship marketing. As of December 31, 2009, WPP PLC operated through 2,400 offices in 107 countries. In February 2009, the Company acquired Red Dot Square Solutions. In May 2010, the Company acquired Midia Digital and I-Cherry, two of the digital agencies in Brazil.
Generation Next Franchise Brands Company Profile
Generation NEXT Franchise Brands, Inc. formerly Fresh Healthy Vending International, Inc., is a franchise development company and operator of Company-owned vending machines, micro markets and frozen yogurt robots. The Company provides a portfolio of fresh, organic and all-natural snacks and drinks. The micro market provides fresh full meal options, such as salads, sandwiches and wraps. The micro market is designed for implementation in corporate environments, hotel lobbies, auto dealerships and other retail environments. The Company is focused on setting up national distribution partners to carry the consumable products required for the frozen yogurt robots. It outsources non-core functions to third-party vendors. Its services include machine manufacturing, transport, location set-up, maintenance, inventory, food management and ordering, payment processing and cash management. As of June 30, 2016, the Company and its franchisees operated over 3,000 vending machines and micro markets.
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