Analyzing Omnicom Group (NYSE:OMC) and Rocket Fuel (FUEL)
Rocket Fuel (NASDAQ: FUEL) and Omnicom Group (NYSE:OMC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitabiliy, earnings, analyst recommendations, institutional ownership and dividends.
Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 2.7%. Rocket Fuel does not pay a dividend. Omnicom Group pays out 44.8% of its earnings in the form of a dividend. Rocket Fuel has increased its dividend for 7 consecutive years.
This is a breakdown of current recommendations for Rocket Fuel and Omnicom Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rocket Fuel presently has a consensus target price of $3.65, indicating a potential upside of 34.69%. Omnicom Group has a consensus target price of $85.08, indicating a potential upside of 4.68%. Given Rocket Fuel’s higher probable upside, analysts plainly believe Rocket Fuel is more favorable than Omnicom Group.
Volatility and Risk
Rocket Fuel has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Insider and Institutional Ownership
31.8% of Rocket Fuel shares are owned by institutional investors. Comparatively, 97.5% of Omnicom Group shares are owned by institutional investors. 34.9% of Rocket Fuel shares are owned by company insiders. Comparatively, 1.1% of Omnicom Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Rocket Fuel and Omnicom Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Rocket Fuel and Omnicom Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rocket Fuel||$446.69 million||0.28||-$10.06 million||($1.49)||-1.82|
|Omnicom Group||$15.51 billion||1.22||$2.32 billion||$4.91||16.55|
Omnicom Group has higher revenue and earnings than Rocket Fuel. Rocket Fuel is trading at a lower price-to-earnings ratio than Omnicom Group, indicating that it is currently the more affordable of the two stocks.
Omnicom Group beats Rocket Fuel on 12 of the 16 factors compared between the two stocks.
About Rocket Fuel
Rocket Fuel Inc. is a technology company, which offers a Programmatic Marketing Platform that is designed for helping marketers and their agencies to connect with consumers through digital media. The Company’s service offerings are organized around platforms, including Data Management Platform (DMP) and Demand Side Platform (DSP), which are used by customers themselves or integrating with other customer relationship management or marketing platforms, and together in various permutations as its Programmatic Marketing Platform. The integrated platform is designed to deliver and optimize media spend to engage, upsell and retarget consumers across addressable channels, including display, mobile and video, and across addressable devices, such as tablets, set top boxes, television and mobile phones. It offers Programmatic Marketing Platform as a managed service, which it operate on behalf of its customers, and as a self-service platform operated by its customers or their agencies directly.
About Omnicom Group
Omnicom Group Inc. is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications. The Company caters to various industry sectors, such as food and beverage, consumer products, pharmaceuticals and healthcare, financial services, technology, travel and entertainment, telecommunications and retail. The Company’s branded networks and agencies conduct business on a global basis and operate in the geographic regions, such as The Americas, which includes North America and Latin America; EMEA, which includes Europe, the Middle East and Africa, and Asia Pacific, which includes Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries.
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