Millennial Media (NYSE: MM) and Interpublic Group of Companies, Inc. (The) (NYSE:IPG) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Millennial Media and Interpublic Group of Companies, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Millennial Media -23.47% -26.25% -19.24%
Interpublic Group of Companies, Inc. (The) 7.19% 27.72% 4.67%

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.4%. Millennial Media does not pay a dividend. Interpublic Group of Companies, Inc. (The) pays out 51.8% of its earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has increased its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Millennial Media and Interpublic Group of Companies, Inc. (The)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Millennial Media N/A N/A N/A N/A N/A
Interpublic Group of Companies, Inc. (The) $7.83 billion 1.07 $1.09 billion $1.39 15.30

Interpublic Group of Companies, Inc. (The) has higher revenue and earnings than Millennial Media.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Millennial Media and Interpublic Group of Companies, Inc. (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Millennial Media 0 0 0 0 N/A
Interpublic Group of Companies, Inc. (The) 2 4 10 0 2.50

Interpublic Group of Companies, Inc. (The) has a consensus target price of $25.83, indicating a potential upside of 21.51%. Given Interpublic Group of Companies, Inc. (The)’s higher probable upside, analysts clearly believe Interpublic Group of Companies, Inc. (The) is more favorable than Millennial Media.

Institutional & Insider Ownership

97.9% of Interpublic Group of Companies, Inc. (The) shares are held by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Interpublic Group of Companies, Inc. (The) beats Millennial Media on 10 of the 11 factors compared between the two stocks.

About Millennial Media

Millennial Media, Inc. is an independent mobile advertising marketplace delivering products and services to advertisers and developers. The Company offers advertisers a suite of solutions that allow them to reach and connect with the target audiences across screens, from smartphones, tablets and other mobile devices to PCs. The Company offers developers the ability to maximize the advertising revenue and acquire new users for apps. Its advertiser and developer solutions support all mobile operating systems, including Apple iOS, Android, Windows Phone and BlackBerry. For clients who want a higher degree of customer service, the Company offers its managed media services with dedicated account teams. For its clients who want to interact with it on a more automated basis, the Company offers tools that allow advertisers to buy its ad supply in a programmatic fashion through its ad exchange and developers the opportunity to manage and monetize the ad inventory through its supply side tool.

About Interpublic Group of Companies, Inc. (The)

The Interpublic Group of Companies, Inc. is a global advertising and marketing services company. The Company specializes in consumer advertising, digital marketing, communications planning and media buying, public relations and specialized communications disciplines. It operates in two segments: Integrated Agency Networks (IAN) and Constituency Management Group (CMG). Its agencies offer customized marketing programs for clients that range in scale from global marketers to regional and local clients. IAN consists of McCann Worldgroup, FCB, MullenLowe Group, IPG Mediabrands, its digital specialist agencies and its domestic integrated agencies. CMG consists of its specialist marketing services offerings. It has three global networks: McCann Worldgroup, Foote, Cone & Belding and MullenLowe Group, which provide integrated, advertising and marketing solutions for clients. Its global media services companies include UM and Initiative, which operate under the IPG Mediabrands umbrella.

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