Omnicom Group Inc. (OMC) vs Ziff Davis, Inc. (ZD)

Omnicom Group Inc. and Ziff Davis, Inc. are both Advertising Agencies companies. Omnicom Group Inc. is the larger, with a market value of $20.5B against $1.9B — 10.6× the size. Ziff Davis, Inc. trades at the lower P/E: 3.2× against 63.8×. Omnicom Group Inc. grew revenue faster over the last twelve months: 40.6% against 7.80%. Ziff Davis, Inc. has the higher net margin (44.8% vs 1.74%) and the higher return on invested capital (4.71% vs 4.14%). Across the 22 metrics below, Ziff Davis, Inc. leads on 18 and Omnicom Group Inc. on 4.

Valuation

Metric OMC ZD Advertising Agencies median
P/E 63.76 3.20 19.90
P/S 0.95 1.43 0.65
P/B 2.07 0.92 1.58
Price to free cash flow 8.89 6.49 8.32
EV/EBITDA 17.29 3.28 11.81
EV/Sales 1.25 0.92 1.11
Earnings yield 1.57% 31.27% (6.44%)
Free cash flow yield 11.25% 15.40% 0.00%

Profitability

Metric OMC ZD Advertising Agencies median
Gross margin 11.20% 85.01% 44.25%
Operating margin 5.01% 7.86% 0.00%
Net margin 1.74% 44.75% (6.98%)
Free cash flow margin 10.68% 22.02% 0.00%
Return on equity 5.10% 31.54% 0.00%
Return on assets 0.99% 17.12% 0.00%
Return on invested capital 4.14% 4.71% 0.00%

Growth

Metric OMC ZD Advertising Agencies median
Revenue growth (TTM) 40.60% 7.80% 6.06%
EPS growth (last fiscal year) (103.62%) (19.01%) —
Revenue growth, 5-year CAGR 5.57% 4.60% 4.30%
Net income growth, 5-year CAGR 0.00% (20.66%) 0.00%

Health

Metric OMC ZD Advertising Agencies median
Debt to equity 0.97 0.39 0.04
Current ratio 0.92 2.16 1.45
Net debt to EBITDA 3.10 0.59 0.01

Dividend

Metric OMC ZD Advertising Agencies median
Dividend yield 3.50% — 5.24%
Payout ratio 0.41 0.00 0.00

Size

Metric OMC ZD Advertising Agencies median
Market cap 20.49b 1.94b 43.42m

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