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

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Omnicom Group $15.41 billion $2.32 billion 15.15
Omnicom Group Competitors $1.06 billion $143.89 million 17.15

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.

Dividends

Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. 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 3.0% and pay out 46.1% of their earnings in the form of a dividend. Omnicom Group has raised its dividend for 7 consecutive years.

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

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%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Omnicom Group and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicom Group 1 12 1 0 2.00
Omnicom Group Competitors 81 542 936 17 2.56

Omnicom Group currently has a consensus target price of $85.33, suggesting a potential upside of 13.78%. As a group, “Advertising & Marketing” companies have a potential upside of 19.85%. Given Omnicom Group’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Omnicom Group has less favorable growth aspects than its competitors.

Risk and Volatility

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

Summary

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

Omnicom Group Company Profile

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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