Omnicom Group Inc. (OMC) vs WPP PLC (WPP)

Omnicom Group Inc. and WPP PLC are both Advertising Agencies companies. Omnicom Group Inc. is the larger, with a market value of $23.8B against $6.0B — 3.9× the size. WPP PLC trades at the lower P/E: 20.8× against 48.0×. Omnicom Group Inc. grew revenue faster over the last twelve months: 54.1% against 12.5%. WPP PLC has the higher net margin (4.18% vs 2.85%) and the lower return on invested capital (0.00% vs 5.98%). Both pay a dividend; Omnicom Group Inc. yields more (3.66% vs 3.60%). Across the 19 metrics below, Omnicom Group Inc. leads on 12 and WPP PLC on 7.

Valuation

Metric OMC WPP Advertising Agencies median
P/E 48.03 20.77 21.69
P/S 0.97 n/m 0.73
P/B 2.32 n/m 1.02
Price to free cash flow 8.36 n/m 8.36
EV/EBITDA 13.83 0.79 11.66
EV/Sales 1.22 0.11 0.96
Earnings yield 2.08% 4.81% (2.98%)
Free cash flow yield 11.96% 0.00% 0.00%

Profitability

Metric OMC WPP Advertising Agencies median
Gross margin 12.56% 17.21% 44.67%
Operating margin 6.39% 0.00% 0.00%
Net margin 2.85% 4.18% (2.95%)
Free cash flow margin 11.57% 0.00% 0.00%
Return on equity 9.13% 0.00% 0.00%
Return on assets 1.80% 0.00% 0.00%
Return on invested capital 5.98% 0.00% 0.00%

Growth

Metric OMC WPP Advertising Agencies median
Revenue growth (TTM) 54.10% 12.46% 2.99%
EPS growth (last fiscal year) (103.62%) (141.77%) 44.63%
Revenue growth, 5-year CAGR 5.57% 3.00% 5.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OMC WPP Advertising Agencies median
Debt to equity 0.97 1.92 0.04
Current ratio 0.91 0.87 1.72
Net debt to EBITDA 3.10 2.70 0.02

Dividend

Metric OMC WPP Advertising Agencies median
Dividend yield 3.66% 3.60% 3.66%
Payout ratio 1.79 — —

Size

Metric OMC WPP Advertising Agencies median
Market cap 23.76b 6.03b 60.75m

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