Omnicom Group Inc. (OMC) vs Stagwell Inc. (STGW)

Omnicom Group Inc. and Stagwell Inc. are both Advertising Agencies companies. Omnicom Group Inc. is the larger, with a market value of $23.8B against $2.7B — 8.8× the size. Omnicom Group Inc. trades at the lower P/E: 48.0× against 271×. Omnicom Group Inc. grew revenue faster over the last twelve months: 54.1% against 7.74%. Omnicom Group Inc. has the higher net margin (2.85% vs 0.31%) and the higher return on invested capital (5.98% vs 3.95%). Across the 22 metrics below, Omnicom Group Inc. leads on 17 and Stagwell Inc. on 5.

Valuation

Metric OMC STGW Advertising Agencies median
P/E 48.03 271.00 21.69
P/S 0.97 0.85 0.73
P/B 2.32 3.73 1.02
Price to free cash flow 8.36 9.83 8.36
EV/EBITDA 13.83 12.33 11.66
EV/Sales 1.22 1.33 0.96
Earnings yield 2.08% 0.37% (2.98%)
Free cash flow yield 11.96% 10.17% 0.00%

Profitability

Metric OMC STGW Advertising Agencies median
Gross margin 12.56% 36.03% 44.67%
Operating margin 6.39% 4.04% 0.00%
Net margin 2.85% 0.31% (2.95%)
Free cash flow margin 11.57% 8.66% 0.00%
Return on equity 9.13% 1.31% 0.00%
Return on assets 1.80% 0.23% 0.00%
Return on invested capital 5.98% 3.95% 0.00%

Growth

Metric OMC STGW Advertising Agencies median
Revenue growth (TTM) 54.10% 7.74% 2.99%
EPS growth (last fiscal year) (103.62%) 479.00% 44.63%
Revenue growth, 5-year CAGR 5.57% 26.78% 5.40%
Net income growth, 5-year CAGR 0.00% (12.38%) 0.00%

Health

Metric OMC STGW Advertising Agencies median
Debt to equity 0.97 1.99 0.04
Current ratio 0.91 0.81 1.72
Net debt to EBITDA 3.10 3.78 0.02

Dividend

Metric OMC STGW Advertising Agencies median
Dividend yield 3.66% — 3.66%
Payout ratio 1.79 — —

Size

Metric OMC STGW Advertising Agencies median
Market cap 23.76b 2.69b 60.75m

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