Omnicom Group (NYSE: OMC) and Criteo (NASDAQ:CRTO) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Insider & Institutional Ownership

98.7% of Omnicom Group shares are held by institutional investors. Comparatively, 84.4% of Criteo shares are held by institutional investors. 1.1% of Omnicom Group shares are held by company insiders. Comparatively, 5.6% of Criteo shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Omnicom Group and Criteo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omnicom Group 7.61% 42.54% 5.22%
Criteo 3.48% 13.94% 7.74%

Dividends

Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 3.1%. Criteo does not pay a dividend. Omnicom Group pays out 44.4% of its earnings in the form of a dividend. Omnicom Group has raised its dividend for 7 consecutive years.

Volatility and Risk

Omnicom Group has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Criteo has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Valuation and Earnings

This table compares Omnicom Group and Criteo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Omnicom Group $15.41 billion 1.08 $2.32 billion $4.95 14.53
Criteo $2.05 billion 1.46 $186.34 million $1.08 44.88

Omnicom Group has higher revenue and earnings than Criteo. Omnicom Group is trading at a lower price-to-earnings ratio than Criteo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Omnicom Group and Criteo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicom Group 1 10 1 0 2.00
Criteo 0 5 8 0 2.62

Omnicom Group currently has a consensus target price of $85.36, suggesting a potential upside of 18.66%. Criteo has a consensus target price of $56.71, suggesting a potential upside of 17.00%. Given Omnicom Group’s higher possible upside, research analysts plainly believe Omnicom Group is more favorable than Criteo.

Summary

Omnicom Group beats Criteo on 9 of the 17 factors compared between the two stocks.

Omnicom Group Company Profile

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.

Criteo Company Profile

Criteo SA is a France-based company specializing in digital performance marketing. Its solution consists of the Criteo Engine, the Company’s data assets, access to inventory, and its advertiser and publisher platforms. The Criteo Engine consists of various machine learning algorithms, such as prediction, recommendation, bidding and creative algorithms and the global hardware and software infrastructure. The Criteo Engine delivers advertisements through multiple marketing channels and formats, including display advertising banners, native advertising banners and marketing messages delivered to opt-in e-mail addresses. Advertisements are delivered on all devices and screens, including Web browsers on desktops and laptops, mobile Web browsers on smartphones and tablets, as well as mobile applications. It operates in approximately 90 countries through a network of over 30 international offices located in Europe, the Americas and the Asia-Pacific region. It operates through HookLogic Inc.

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