Head to Head Analysis: Autobytel (ABTL) versus Omnicom Group (OMC)
Autobytel (NASDAQ: ABTL) and Omnicom Group (NYSE:OMC) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
56.6% of Autobytel shares are held by institutional investors. Comparatively, 98.0% of Omnicom Group shares are held by institutional investors. 12.8% of Autobytel shares are held by insiders. Comparatively, 1.1% of Omnicom Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Autobytel and Omnicom Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Autobytel and Omnicom Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Autobytel presently has a consensus target price of $20.00, indicating a potential upside of 156.08%. Omnicom Group has a consensus target price of $85.36, indicating a potential upside of 16.73%. Given Autobytel’s stronger consensus rating and higher possible upside, research analysts plainly believe Autobytel is more favorable than Omnicom Group.
Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. Autobytel does not pay a dividend. Omnicom Group pays out 44.4% of its earnings in the form of a dividend. Autobytel has raised its dividend for 7 consecutive years.
Volatility & Risk
Autobytel has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Earnings and Valuation
This table compares Autobytel and Omnicom Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Autobytel||$156.22 million||0.64||$14.97 million||$0.37||21.11|
|Omnicom Group||$15.41 billion||1.10||$2.32 billion||$4.95||14.77|
Omnicom Group has higher revenue and earnings than Autobytel. Omnicom Group is trading at a lower price-to-earnings ratio than Autobytel, indicating that it is currently the more affordable of the two stocks.
Omnicom Group beats Autobytel on 10 of the 16 factors compared between the two stocks.
Autobytel Inc. is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites. For consumers who may not be able to secure loans through conventional lending sources, the Websites provide these consumers the ability to submit inquiries requesting dealers.
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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