Omnicom Group (NYSE: OMC) is one of 37 public companies in the “Advertising & Marketing” industry, but how does it contrast to its competitors? We will compare Omnicom Group to related companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, earnings, dividends and valuation.

Institutional and Insider Ownership

98.6% of Omnicom Group shares are held by institutional investors. Comparatively, 57.8% of shares of all “Advertising & Marketing” companies are held by institutional investors. 1.1% of Omnicom Group shares are held by company insiders. Comparatively, 21.0% of shares of all “Advertising & Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Omnicom Group and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicom Group 1 12 1 0 2.00
Omnicom Group Competitors 81 541 934 17 2.56

Omnicom Group currently has a consensus price target of $85.33, suggesting a potential upside of 17.30%. As a group, “Advertising & Marketing” companies have a potential upside of 19.20%. Given Omnicom Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Omnicom Group has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Omnicom Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Omnicom Group $15.41 billion $2.32 billion 14.70
Omnicom Group Competitors $1.10 billion $145.37 million 16.89

Omnicom Group has higher revenue and earnings than its competitors. Omnicom Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Omnicom Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omnicom Group 7.61% 42.54% 5.22%
Omnicom Group Competitors -6.40% -9.08% -2.78%

Dividends

Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. Omnicom Group pays out 44.4% 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 46.1% of their earnings in the form of a dividend. Omnicom Group has raised its dividend for 7 consecutive years.

Volatility & Risk

Omnicom Group has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Omnicom Group’s competitors have a beta of 1.04, meaning that their average stock price is 4% more volatile than the S&P 500.

Summary

Omnicom Group beats its competitors on 8 of the 15 factors compared.

About Omnicom Group

Omnicom Group Inc. is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications. The Company caters to various industry sectors, such as food and beverage, consumer products, pharmaceuticals and healthcare, financial services, technology, travel and entertainment, telecommunications and retail. The Company’s branded networks and agencies conduct business on a global basis and operate in the geographic regions, such as The Americas, which includes North America and Latin America; EMEA, which includes Europe, the Middle East and Africa, and Asia Pacific, which includes Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries.

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