WallStSmart

Applovin Corp (APP)vsOmnicom Group Inc (OMC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Omnicom Group Inc generates 263% more annual revenue ($24.76B vs $6.83B). APP leads profitability with a 64.6% profit margin vs 2.9%. APP appears more attractively valued with a PEG of 0.50. APP earns a higher WallStSmart Score of 79/100 (B+).

APP

Strong Buy

79

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 6.7Quality: 8.0
Piotroski: 6/9Altman Z: 3.74

OMC

Strong Buy

71

out of 100

Grade: B

Growth: 8.7Profit: 5.5Value: 5.3Quality: 2.5
Piotroski: 1/9Altman Z: 0.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPSignificantly Overvalued (-46.4%)

Margin of Safety

-46.4%

Fair Value

$267.19

Current Price

$393.68

$126.49 premium

UndervaluedFair: $267.19Overvalued
OMCUndervalued (+23.6%)

Margin of Safety

+23.6%

Fair Value

$90.69

Current Price

$86.84

$3.85 discount

UndervaluedFair: $90.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
152.0%10/10

Every $100 of equity generates 152 in profit

Profit MarginProfitability
64.6%10/10

Keeps 65 of every $100 in revenue as profit

Operating MarginProfitability
77.7%10/10

Strong operational efficiency at 77.7%

Revenue GrowthGrowth
52.8%10/10

Revenue surging 52.8% year-over-year

EPS GrowthGrowth
57.0%10/10

Earnings expanding 57.0% YoY

OMC3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
59.1%10/10

Revenue surging 59.1% year-over-year

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

Areas to Watch

APP2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.073/10

Elevated debt levels

Price/BookValuation
41.7x2/10

Trading at 41.7x book value

OMC4 concerns · Avg: 3.0/10
Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : APP

The strongest argument for APP centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 64.6% and operating margin at 77.7%. Revenue growth of 52.8% demonstrates continued momentum.

Bull Case : OMC

The strongest argument for OMC centers on Revenue Growth, Price/Book, EPS Growth. Revenue growth of 59.1% demonstrates continued momentum. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bear Case : APP

The primary concerns for APP are Debt/Equity, Price/Book.

Bear Case : OMC

The primary concerns for OMC are Return on Equity, Profit Margin, Debt/Equity. A P/E of 89.7x leaves little room for execution misses. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

APP profiles as a growth stock while OMC is a hypergrowth play — different risk/reward profiles.

APP carries more volatility with a beta of 2.56 — expect wider price swings.

OMC is growing revenue faster at 59.1% — sustainability is the question.

APP generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

APP scores higher overall (79/100 vs 71/100), backed by strong 64.6% margins and 52.8% revenue growth. OMC offers better value entry with a 23.6% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Applovin Corp

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.

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Omnicom Group Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.

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