Critical Analysis: Dolphin Entertainment (NASDAQ:DLPN) versus Omnicom Group (NYSE:OMC)

Dolphin Entertainment (NASDAQ:DLPN) and Omnicom Group (NYSE:OMC) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dolphin Entertainment	-6.31%	-21.68%	-3.03%
Omnicom Group	1.74%	24.73%	5.15%

Insider & Institutional Ownership

8.9% of Dolphin Entertainment shares are held by institutional investors. Comparatively, 92.0% of Omnicom Group shares are held by institutional investors. 19.2% of Dolphin Entertainment 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Dolphin Entertainment and Omnicom Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dolphin Entertainment	$56.70 million	0.22	-$3.09 million	($0.29)	-3.34
Omnicom Group	$17.27 billion	1.29	-$54.50 million	$1.16	69.86

Dolphin Entertainment has higher earnings, but lower revenue than Omnicom Group. Dolphin Entertainment 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

Dolphin Entertainment has a beta of 1.83, meaning that its share price is 83% 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Dolphin Entertainment and Omnicom Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dolphin Entertainment	1	1	0	0	1.50
Omnicom Group	1	6	4	0	2.27

Omnicom Group has a consensus target price of $98.75, suggesting a potential upside of 21.85%. Given Omnicom Group’s stronger consensus rating and higher possible upside, analysts plainly believe Omnicom Group is more favorable than Dolphin Entertainment.

Summary

Omnicom Group beats Dolphin Entertainment on 11 of the 14 factors compared between the two stocks.

About Dolphin Entertainment

Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The company operates in two segments, Entertainment Publicity, and Marketing and Content Production. The Entertainment Publicity and Marketing segment provides diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic communications, strategic marketing consulting, social media and influencer marketing, digital marketing, creative branding, talent publicity, and entertainment marketing services, as well as produces promotional video content. The Content Production segment produces and distributes feature films and digital content. In addition, it offers strategic marketing and publicity services to individuals and corporates in the entertainment, hospitality, and music industries; and marketing direction, public relations counsel, and media strategy for video game publishers, as well as eSports leagues and other entities in the gaming industry. The company was formerly known as Dolphin Digital Media, Inc. and changed its name to Dolphin Entertainment, Inc. in July 2017. The company was incorporated in 1995 and is headquartered in Coral Gables, Florida.

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.