Analyzing Omnicom Group (NYSE:OMC) and JC Decaux (OTCMKTS:JCDXF)

Omnicom Group (NYSE:OMC) and JC Decaux (OTCMKTS:JCDXF) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

Omnicom Group has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, JC Decaux has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Institutional & 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 is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	-0.32%	35.41%	6.23%
JC Decaux	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Omnicom Group and JC Decaux, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	1	3	4	0	2.38
JC Decaux	0	2	0	1	2.67

Omnicom Group currently has a consensus target price of $95.00, indicating a potential upside of 14.82%. Given Omnicom Group’s higher possible upside, analysts plainly believe Omnicom Group is more favorable than JC Decaux.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$17.27 billion	0.92	-$54.50 million	$0.49	168.86
JC Decaux	$3.93 billion	N/A	$280.16 million	N/A	N/A

JC Decaux has lower revenue, but higher earnings than Omnicom Group.

Summary

Omnicom Group beats JC Decaux on 8 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 JC Decaux

JCDecaux SE operates as an outdoor advertising company worldwide. It operates through three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment provides advertising services in shopping malls; rents street furniture; and sells and rents equipment, such as automatic public toilets, bikes, etc., as well as provides cleaning, maintenance, and other services. The Transport segment provides advertising services in public transport systems, such as airports, metros, buses, trams, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; neon-light billboards; and advertising wall wraps. The company was founded in 1964 and is based in Neuilly-sur-Seine, France. JCDecaux SE is a subsidiary of JCDecaux Holding SAS.