Interpublic Group of Companies, Inc. (The) (NYSE: IPG) is one of 37 publicly-traded companies in the “Advertising & Marketing” industry, but how does it contrast to its peers? We will compare Interpublic Group of Companies, Inc. (The) to related businesses based on the strength of its risk, valuation, institutional ownership, analyst recommendations, dividends, profitability and earnings.

Volatility and Risk

Interpublic Group of Companies, Inc. (The) has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Interpublic Group of Companies, Inc. (The)’s peers have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Interpublic Group of Companies, Inc. (The) 7.19% 27.72% 4.67%
Interpublic Group of Companies, Inc. (The) Competitors -9.42% -10.59% -3.78%

Insider and Institutional Ownership

97.9% of Interpublic Group of Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Advertising & Marketing” companies are owned by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are owned by insiders. Comparatively, 22.1% of shares of all “Advertising & Marketing” companies are owned by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Interpublic Group of Companies, Inc. (The) and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpublic Group of Companies, Inc. (The) 2 4 10 0 2.50
Interpublic Group of Companies, Inc. (The) Competitors 43 416 873 16 2.64

Interpublic Group of Companies, Inc. (The) currently has a consensus target price of $25.83, suggesting a potential upside of 22.78%. As a group, “Advertising & Marketing” companies have a potential upside of 13.61%. Given Interpublic Group of Companies, Inc. (The)’s higher possible upside, equities analysts plainly believe Interpublic Group of Companies, Inc. (The) is more favorable than its peers.

Valuation and Earnings

This table compares Interpublic Group of Companies, Inc. (The) and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Interpublic Group of Companies, Inc. (The) $7.83 billion $1.09 billion 15.14
Interpublic Group of Companies, Inc. (The) Competitors $1.10 billion $149.96 million 19.34

Interpublic Group of Companies, Inc. (The) has higher revenue and earnings than its peers. Interpublic Group of Companies, Inc. (The) is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.4%. Interpublic Group of Companies, Inc. (The) pays out 51.8% of its earnings in the form of a dividend. As a group, “Advertising & Marketing” companies pay a dividend yield of 3.1% and pay out 46.1% of their earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has increased its dividend for 4 consecutive years.

Summary

Interpublic Group of Companies, Inc. (The) beats its peers on 9 of the 15 factors compared.

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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