TechTarget (NASDAQ:TTGT) & Omnicom Group (NYSE:OMC) Financial Contrast

Omnicom Group (NYSE:OMC) and TechTarget (NASDAQ:TTGT) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Valuation and Earnings

This table compares Omnicom Group and TechTarget”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$17.27 billion	1.35	-$54.50 million	$1.16	73.48
TechTarget	$488.95 million	0.57	-$1.01 billion	($7.73)	-0.50

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

Risk & Volatility

Omnicom Group has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, TechTarget has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	1.74%	24.73%	5.15%
TechTarget	-113.65%	5.19%	3.18%

Institutional & Insider Ownership

92.0% of Omnicom Group shares are held by institutional investors. Comparatively, 93.5% of TechTarget shares are held by institutional investors. 1.2% of Omnicom Group shares are held by company insiders. Comparatively, 0.9% of TechTarget 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.

Analyst Recommendations

This is a summary of recent ratings for Omnicom Group and TechTarget, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	2	5	4	0	2.18
TechTarget	1	0	2	0	2.33

Omnicom Group currently has a consensus target price of $99.00, indicating a potential upside of 16.15%. TechTarget has a consensus target price of $8.00, indicating a potential upside of 108.33%. Given TechTarget’s stronger consensus rating and higher possible upside, analysts clearly believe TechTarget is more favorable than Omnicom Group.

Summary

Omnicom Group beats TechTarget on 10 of the 14 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 TechTarget

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. The company's service enables technology vendors to identify, reach, and influence corporate information technology (IT) decision-makers actively researching specific IT purchases; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. It offers business to business services, such as IT Deal Alert, a suite of data, software, and services comprising Priority Engine and Qualified Sales Opportunities to identify and prioritize accounts and individuals actively researching new technology purchases or upgrades; demand solutions provides marketing programs, including white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions which includes on-network banner advertising and digital sponsorships, off-network banner targeting, and microsites and related formats; custom content creation that delivers market insights and guidance to technology companies and off-the-shelf editorial sponsorship products on topics aligned to customer markets; and BrightTALK platform which allows customers to create, host and promote webinars, virtual events, and video content. In addition, the company operates websites, webinars, and virtual event channels that focus on a specific IT sector, such as storage, security, or networking; and enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.