WallStSmart

Omnicom Group Inc (OMC)vsStagwell Inc (STGW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Omnicom Group Inc generates 636% more annual revenue ($22.37B vs $3.04B). OMC leads profitability with a 1.7% profit margin vs 0.5%. STGW appears more attractively valued with a PEG of 0.41. OMC earns a higher WallStSmart Score of 67/100 (B-).

OMC

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 4.0Quality: 2.5
Piotroski: 1/9Altman Z: 0.77

STGW

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 4.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OMCUndervalued (+16.0%)

Margin of Safety

+16.0%

Fair Value

$82.55

Current Price

$79.27

$3.28 discount

UndervaluedFair: $82.55Overvalued

Intrinsic value data unavailable for STGW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OMC3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
63.4%10/10

Revenue surging 63.4% year-over-year

EPS GrowthGrowth
58.8%10/10

Earnings expanding 58.8% YoY

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

STGW2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

EPS GrowthGrowth
65.1%10/10

Earnings expanding 65.1% YoY

Areas to Watch

OMC4 concerns · Avg: 3.0/10
Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

STGW4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
145.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : OMC

The strongest argument for OMC centers on Revenue Growth, EPS Growth, Price/Book. Revenue growth of 63.4% demonstrates continued momentum.

Bull Case : STGW

The strongest argument for STGW centers on PEG Ratio, EPS Growth. Revenue growth of 11.2% demonstrates continued momentum. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bear Case : OMC

The primary concerns for OMC are Return on Equity, Profit Margin, Debt/Equity. A P/E of 212.7x leaves little room for execution misses. Thin 1.7% margins leave little buffer for downturns.

Bear Case : STGW

The primary concerns for STGW are Return on Equity, Profit Margin, Operating Margin. A P/E of 145.0x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.

Key Dynamics to Monitor

OMC profiles as a hypergrowth stock while STGW is a value play — different risk/reward profiles.

STGW carries more volatility with a beta of 1.22 — expect wider price swings.

OMC is growing revenue faster at 63.4% — sustainability is the question.

STGW generates stronger free cash flow (-37M), providing more financial flexibility.

Bottom Line

OMC scores higher overall (67/100 vs 57/100) and 63.4% revenue growth. Both earn "Strong Buy" and "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.

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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Stagwell Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Stagwell Inc. (STGW) is a leading digital marketing and communications agency, founded in 2015, renowned for its innovative, performance-driven strategies across advertising, public relations, and digital media platforms. Leveraging advanced technology and data analytics, Stagwell delivers measurable results for clients, solidifying its status as a front-runner in the evolving marketing landscape. With a strategic focus on targeted acquisitions, the company enhances its competitive advantage and growth potential, making it an attractive investment prospect for institutional investors seeking exposure to the expanding global digital economy.

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