Interpublic Group of Companies, Inc. (The) (IPG) & The Competition Critical Review

Interpublic Group of Companies, Inc. (The) (NYSE: IPG) is one of 35 publicly-traded companies in the “Advertising & Marketing” industry, but how does it compare to its peers? We will compare Interpublic Group of Companies, Inc. (The) to related companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, valuation and profitability.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Interpublic Group of Companies, Inc. (The) $7.85 billion $608.50 million 12.97
Interpublic Group of Companies, Inc. (The) Competitors $2.71 billion $171.61 million -515.16

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Interpublic Group of Companies, Inc. (The) and its peers, as reported by MarketBeat.

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 50 441 900 16 2.63

Interpublic Group of Companies, Inc. (The) currently has a consensus price target of $25.92, indicating a potential upside of 38.81%. As a group, “Advertising & Marketing” companies have a potential upside of 20.44%. Given Interpublic Group of Companies, Inc. (The)’s higher possible upside, research analysts plainly believe Interpublic Group of Companies, Inc. (The) is more favorable than its peers.

Insider & Institutional Ownership

97.8% of Interpublic Group of Companies, Inc. (The) shares are held by institutional investors. Comparatively, 58.6% of shares of all “Advertising & Marketing” companies are held by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are held by company insiders. Comparatively, 22.1% of shares of all “Advertising & Marketing” companies 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 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) 7.43% 27.38% 4.67%
Interpublic Group of Companies, Inc. (The) Competitors -7.67% -9.01% -2.85%

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.9%. Interpublic Group of Companies, Inc. (The) pays out 50.0% of its earnings in the form of a dividend. As a group, “Advertising & Marketing” companies pay a dividend yield of 3.4% and pay out 45.2% of their earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has raised its dividend for 4 consecutive years.

Risk and Volatility

Interpublic Group of Companies, Inc. (The) has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Interpublic Group of Companies, Inc. (The)’s peers have a beta of 1.17, meaning that their average stock price is 17% more volatile than the S&P 500.

Summary

Interpublic Group of Companies, Inc. (The) beats its peers on 10 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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