Head-To-Head Comparison: Entravision Communications (NYSE:EVC) vs. Omnicom Group (NYSE:OMC)

Entravision Communications (NYSE:EVC) and Omnicom Group (NYSE:OMC) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Risk and Volatility

Entravision Communications has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Entravision Communications and Omnicom Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$447.59 million	1.39	-$79.17 million	$0.01	671.80
Omnicom Group	$22.37 billion	0.92	-$54.50 million	$1.16	64.75

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

Institutional & Insider Ownership

69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 92.0% of Omnicom Group shares are held by institutional investors. 9.1% of Entravision Communications shares are held by company insiders. Comparatively, 1.2% of Omnicom Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	0.62%	6.98%	1.17%
Omnicom Group	1.74%	24.73%	5.15%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Entravision Communications and Omnicom Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	0	1	0	0	2.00
Omnicom Group	1	6	4	0	2.27

Omnicom Group has a consensus price target of $99.00, suggesting a potential upside of 31.80%. Given Omnicom Group’s stronger consensus rating and higher possible upside, analysts plainly believe Omnicom Group is more favorable than Entravision Communications.

Dividends

Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Omnicom Group pays an annual dividend of $3.20 per share and has a dividend yield of 4.3%. Entravision Communications pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omnicom Group pays out 275.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omnicom Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Omnicom Group beats Entravision Communications on 12 of the 16 factors compared between the two stocks.

About Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.

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.