Stagwell Inc. (STGW) vs WPP PLC (WPP)

Stagwell Inc. and WPP PLC are both Advertising Agencies companies. WPP PLC is the larger, with a market value of $5.5B against $2.0B — 2.7× the size. WPP PLC trades at the lower P/E: 19.3× against 119×. WPP PLC grew revenue faster over the last twelve months: 12.5% against 6.38%. WPP PLC has the higher net margin (4.18% vs 0.53%) and the lower return on invested capital (0.00% vs 4.28%). Across the 19 metrics below, WPP PLC leads on 10 and Stagwell Inc. on 9.

Valuation

Metric STGW WPP Advertising Agencies median
P/E 118.86 19.32 19.90
P/S 0.67 n/m 0.65
P/B 2.98 n/m 1.58
Price to free cash flow 13.46 n/m 8.32
EV/EBITDA 10.69 0.79 11.81
EV/Sales 1.14 0.11 1.11
Earnings yield 0.84% 5.18% (6.44%)
Free cash flow yield 7.43% 0.00% 0.00%

Profitability

Metric STGW WPP Advertising Agencies median
Gross margin 35.83% 17.21% 44.25%
Operating margin 4.56% 0.00% 0.00%
Net margin 0.53% 4.18% (6.98%)
Free cash flow margin 5.00% 0.00% 0.00%
Return on equity 2.22% 0.00% 0.00%
Return on assets 0.38% 0.00% 0.00%
Return on invested capital 4.28% 0.00% 0.00%

Growth

Metric STGW WPP Advertising Agencies median
Revenue growth (TTM) 6.38% 12.46% 6.06%
EPS growth (last fiscal year) 479.00% (141.77%) —
Revenue growth, 5-year CAGR 26.78% 3.00% 4.30%
Net income growth, 5-year CAGR (12.38%) 0.00% 0.00%

Health

Metric STGW WPP Advertising Agencies median
Debt to equity 2.11 1.92 0.04
Current ratio 0.81 0.87 1.45
Net debt to EBITDA 3.78 2.70 0.01

Dividend

Metric STGW WPP Advertising Agencies median
Dividend yield — 4.94% 5.24%
Payout ratio 0.00 0.81 0.00

Size

Metric STGW WPP Advertising Agencies median
Market cap 2.03b 5.48b 43.42m

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