Contrasting Star Fashion Culture (NASDAQ:STFS) & Omnicom Group (NYSE:OMC)

Omnicom Group (NYSE:OMC) and Star Fashion Culture (NASDAQ:STFS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

92.0% of Omnicom Group shares are held by institutional investors. 1.0% of Omnicom Group shares are held 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.

Volatility & Risk

Omnicom Group has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Star Fashion Culture has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Omnicom Group and Star Fashion Culture, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	0	5	4	0	2.44
Star Fashion Culture	1	0	0	0	1.00

Omnicom Group presently has a consensus price target of $92.57, suggesting a potential upside of 14.57%. Given Omnicom Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Omnicom Group is more favorable than Star Fashion Culture.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	8.31%	33.30%	5.73%
Star Fashion Culture	N/A	N/A	N/A

Earnings and Valuation

This table compares Omnicom Group and Star Fashion Culture”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$16.07 billion	0.97	$1.48 billion	$6.77	11.94
Star Fashion Culture	$16.86 million	0.06	-$18.26 million	N/A	N/A

Omnicom Group has higher revenue and earnings than Star Fashion Culture.

Summary

Omnicom Group beats Star Fashion Culture on 12 of the 12 factors compared between the two stocks.

About Omnicom Group

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing and post-production, digital transformation consulting, entertainment marketing, experiential marketing, field marketing, sales support, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, retail media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, retail marketing, retail media and e-commerce, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.

About Star Fashion Culture

Star Fashion Culture Holdings Limited provides content marketing solutions services in the People’s Republic of China. It offers marketing campaign planning and execution services; offline advertising services; and online precision marketing services. The company was founded in 2015 and is based in Xiamen, the People’s Republic of China. Star Fashion Culture Holdings Limited operates as a subsidiary of Xingji ZhangPingting Limited.