Head-To-Head Analysis: Interpublic Group of Companies, Inc. (The) (IPG) versus Autobytel (AUTO)

Interpublic Group of Companies, Inc. (The) (NYSE: IPG) and Autobytel (NASDAQ:AUTO) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Interpublic Group of Companies, Inc. (The) and Autobytel’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Interpublic Group of Companies, Inc. (The) $7.85 billion 0.93 $608.50 million $1.44 13.00
Autobytel $156.68 million 0.72 $3.87 million $0.17 50.71

Interpublic Group of Companies, Inc. (The) has higher revenue and earnings than Autobytel. Interpublic Group of Companies, Inc. (The) is trading at a lower price-to-earnings ratio than Autobytel, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Interpublic Group of Companies, Inc. (The) has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Autobytel has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Dividends

Interpublic Group of Companies, Inc. (The) pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. Autobytel does not pay a dividend. Interpublic Group of Companies, Inc. (The) pays out 50.0% of its earnings in the form of a dividend. Interpublic Group of Companies, Inc. (The) has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for Interpublic Group of Companies, Inc. (The) and Autobytel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpublic Group of Companies, Inc. (The) 2 4 10 0 2.50
Autobytel 0 0 2 0 3.00

Interpublic Group of Companies, Inc. (The) currently has a consensus price target of $25.92, suggesting a potential upside of 38.44%. Autobytel has a consensus price target of $12.00, suggesting a potential upside of 39.21%. Given Autobytel’s stronger consensus rating and higher possible upside, analysts clearly believe Autobytel is more favorable than Interpublic Group of Companies, Inc. (The).

Institutional & Insider Ownership

97.9% of Interpublic Group of Companies, Inc. (The) shares are held by institutional investors. Comparatively, 52.3% of Autobytel shares are held by institutional investors. 1.5% of Interpublic Group of Companies, Inc. (The) shares are held by company insiders. Comparatively, 12.8% of Autobytel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Interpublic Group of Companies, Inc. (The) and Autobytel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interpublic Group of Companies, Inc. (The) 7.43% 27.38% 4.67%
Autobytel 1.51% 7.47% 5.68%

Summary

Interpublic Group of Companies, Inc. (The) beats Autobytel on 12 of the 17 factors compared between the two stocks.

Interpublic Group of Companies, Inc. (The) Company Profile

The Interpublic Group of Companies, Inc. is a global advertising and marketing services company. The Company specializes in consumer advertising, digital marketing, communications planning and media buying, public relations and specialized communications disciplines. It operates in two segments: Integrated Agency Networks (IAN) and Constituency Management Group (CMG). Its agencies offer customized marketing programs for clients that range in scale from global marketers to regional and local clients. IAN consists of McCann Worldgroup, FCB, MullenLowe Group, IPG Mediabrands, its digital specialist agencies and its domestic integrated agencies. CMG consists of its specialist marketing services offerings. It has three global networks: McCann Worldgroup, Foote, Cone & Belding and MullenLowe Group, which provide integrated, advertising and marketing solutions for clients. Its global media services companies include UM and Initiative, which operate under the IPG Mediabrands umbrella.

Autobytel Company Profile

AutoWeb, Inc., formerly Autobytel Inc., is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites.

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