By analyzing existing fundamental indicators between Omnicom and Interpublic, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Interpublic with a short position in Omnicom. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Omnicom has an asset utilization ratio of 67.34 percent. This suggests that the company is making $0.67 for each dollar of assets. An increasing asset utilization means that Omnicom Group is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Omnicom or Townsquare is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Omnicom dividends
A dividend is the distribution of a portion of Omnicom earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Omnicom dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Omnicom one year expected dividend income is about USD1.87 per share.
The current year's
Dividend Payout Ratio is expected to grow to 0.44, whereas
Dividends Paid is forecasted to decline to about 285
M.
Investing in dividend-paying stocks, such as Omnicom Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Omnicom must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Omnicom. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Omnicom's Liquidity
Omnicom
financial leverage refers to using borrowed capital as a funding source to finance Omnicom Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Omnicom financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Omnicom's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Omnicom's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Omnicom's total debt and its cash.
Correlation Between Omnicom and Townsquare Media
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Omnicom together with similar or unrelated positions with a negative correlation. For example, you can also add Townsquare Media to your portfolio. If Townsquare Media is not perfectly correlated to Omnicom it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Omnicom, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Omnicom and Townsquare Media in your portfolio? Please note if you are using this as a pair-trade strategy between Omnicom and Townsquare Media, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between OMC and TSQ for more information.
Breaking it down
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Omnicom revenue. Based on the latest financial disclosure, Omnicom Group reported 14.89
B of revenue. This indicator is about the same for the Communication Services average (which is currently at 14.7
B) sector and significantly higher than that of the
Advertising Agencies industry. The revenue for all United States stocks is 57.82% lower than that of the entity. As for Interpublic we see revenue of 8.59
B, which is much higher than that of the Advertising Agencies
| Omnicom | 14.89 Billion |
| Sector | 0.0 |
| Interpublic | 8.59 Billion |
Omnicom current slip is misleading
Omnicom current coefficient of variation builds up over 1723.19. Omnicom Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Omnicom Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Omnicom future alpha.
Our Takeaway on Omnicom Investment
Whereas some other entities in the advertising agencies industry are either recovering or due for a correction, Omnicom may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Omnicom.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Omnicom Group. Please refer to our
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