Boston Omaha (NYSE:BOC) versus Omnicom Group (NYSE:OMC) Financial Analysis

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

Analyst Recommendations

This is a breakdown of current recommendations for Omnicom Group and Boston Omaha, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	1	6	4	0	2.27
Boston Omaha	1	0	0	0	1.00

Omnicom Group currently has a consensus price target of $99.00, suggesting a potential upside of 32.60%. Given Omnicom Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Omnicom Group is more favorable than Boston Omaha.

Profitability

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

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

Risk & Volatility

Omnicom Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Boston Omaha has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

92.0% of Omnicom Group shares are owned by institutional investors. Comparatively, 60.4% of Boston Omaha shares are owned by institutional investors. 1.2% of Omnicom Group shares are owned by insiders. Comparatively, 24.9% of Boston Omaha shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$17.27 billion	1.19	-$54.50 million	$1.16	64.36
Boston Omaha	$114.38 million	3.42	-$12.43 million	($0.42)	-30.91

Boston Omaha has lower revenue, but higher earnings 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.

Summary

Omnicom Group beats Boston Omaha on 10 of the 14 factors compared between the two stocks.

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.

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.