WallStSmart

Stagwell Inc (STGW)vsWPP PLC ADR (WPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WPP PLC ADR generates 366% more annual revenue ($13.55B vs $2.91B). STGW leads profitability with a 100.0% profit margin vs -1.6%. STGW earns a higher WallStSmart Score of 45/100 (D+).

STGW

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 6.0Value: 3.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.96

WPP

Avoid

35

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 4.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

STGWSignificantly Overvalued (-42.3%)

Margin of Safety

-42.3%

Fair Value

$3.74

Current Price

$6.16

$2.42 premium

UndervaluedFair: $3.74Overvalued

Intrinsic value data unavailable for WPP.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STGW3 strengths · Avg: 9.3/10
Profit MarginProfitability
100.0%10/10

Keeps 100 of every $100 in revenue as profit

EPS GrowthGrowth
65.1%10/10

Earnings expanding 65.1% YoY

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

WPP1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

STGW4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Market CapQuality
$1.56B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.9%3/10

ROE of 3.9% — below average capital efficiency

P/E RatioValuation
77.0x2/10

Premium valuation, high expectations priced in

WPP4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.232/10

Expensive relative to growth rate

Return on EquityProfitability
-5.3%2/10

ROE of -5.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : STGW

The strongest argument for STGW centers on Profit Margin, EPS Growth, Price/Book. Profitability is solid with margins at 100.0% and operating margin at 7.3%.

Bull Case : WPP

The strongest argument for WPP centers on Free Cash Flow.

Bear Case : STGW

The primary concerns for STGW are Revenue Growth, Market Cap, Return on Equity. A P/E of 77.0x leaves little room for execution misses. Debt-to-equity of 2.35 is elevated, increasing financial risk.

Bear Case : WPP

The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.

Key Dynamics to Monitor

STGW profiles as a value stock while WPP is a turnaround play — different risk/reward profiles.

STGW carries more volatility with a beta of 1.54 — expect wider price swings.

STGW is growing revenue faster at 2.4% — sustainability is the question.

WPP generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

STGW scores higher overall (45/100 vs 35/100), backed by strong 100.0% margins. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Stagwell Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Stagwell Inc. (STGW) is a cutting-edge digital marketing and communications agency that has rapidly established itself as a leader in the industry since its inception in 2015. With a comprehensive suite of services including advertising, public relations, and digital media, Stagwell leverages advanced technology and data analytics to drive impactful growth for brands. The company's strategic focus on performance-driven solutions and targeted acquisitions enhances its competitive positioning while adapting to the dynamic marketing landscape. For institutional investors, Stagwell presents a unique opportunity to invest in a transformative firm poised for continued success in the evolving global marketplace.

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WPP PLC ADR

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.

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