Contrasting Interpublic Group of Companies (IPG) & AirMedia Group (AMCN)

Interpublic Group of Companies (NYSE:IPG) and AirMedia Group (NASDAQ:AMCN) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

98.1% of Interpublic Group of Companies shares are owned by institutional investors. Comparatively, 1.0% of AirMedia Group shares are owned by institutional investors. 1.5% of Interpublic Group of Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Interpublic Group of Companies has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, AirMedia Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Interpublic Group of Companies and AirMedia Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interpublic Group of Companies $7.88 billion 1.11 $579.00 million $1.41 16.10
AirMedia Group $23.75 million 0.77 -$156.47 million N/A N/A

Interpublic Group of Companies has higher revenue and earnings than AirMedia Group.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Interpublic Group of Companies and AirMedia Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpublic Group of Companies 1 6 5 0 2.33
AirMedia Group 0 0 0 0 N/A

Interpublic Group of Companies presently has a consensus target price of $25.38, suggesting a potential upside of 11.78%. Given Interpublic Group of Companies’ higher possible upside, analysts plainly believe Interpublic Group of Companies is more favorable than AirMedia Group.

Dividends

Interpublic Group of Companies pays an annual dividend of $0.84 per share and has a dividend yield of 3.7%. AirMedia Group does not pay a dividend. Interpublic Group of Companies pays out 59.6% of its earnings in the form of a dividend. Interpublic Group of Companies has increased its dividend for 5 consecutive years.

Profitability

This table compares Interpublic Group of Companies and AirMedia Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpublic Group of Companies 6.62% 30.99% 5.27%
AirMedia Group N/A N/A N/A

Summary

Interpublic Group of Companies beats AirMedia Group on 13 of the 14 factors compared between the two stocks.

About Interpublic Group of Companies

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines. The company also provides various diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. It offers its services under various brands comprising McCann, MullenLowe, IPG Mediabrands, Carmichael Lynch, Deutsch, Hill Holliday, and The Martin Agency, as well as Foote, Cone & Belding. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

About AirMedia Group

AirMedia Group Inc. operates out-of-home advertising platforms in the People's Republic of China. The company operates a network of digital (television) TV screens on planes operated by 7 airlines; and gas station media network, as well as other outdoor media advertising platforms in gas stations. It also displays non-advertising content, such as weather, sports, comedy clips, local attractions, documentaries, commentaries, and reality shows. In addition, the company holds concession rights to install and operate Wi-Fi systems on railway administration bureaus, long-haul buses, and airlines; and operates advertising platforms, such as light boxes, billboards, and LED screens. Further, it operates CIBN-AirMedia channel to broadcast network TV programs to air travelers. AirMedia Group Inc. was founded in 2005 and is headquartered in Beijing, the People's Republic of China.

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