Head-To-Head Contrast: Integral Ad Science (NASDAQ:IAS) and Omnicom Group (NYSE:OMC)

Integral Ad Science (NASDAQ:IAS) and Omnicom Group (NYSE:OMC) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares Integral Ad Science and Omnicom Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integral Ad Science	9.79%	5.00%	4.46%
Omnicom Group	8.67%	33.62%	5.61%

Valuation and Earnings

This table compares Integral Ad Science and Omnicom Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integral Ad Science	$530.10 million	2.84	$37.79 million	$0.34	26.62
Omnicom Group	$15.69 billion	0.94	$1.48 billion	$6.97	10.94

Omnicom Group has higher revenue and earnings than Integral Ad Science. Omnicom Group is trading at a lower price-to-earnings ratio than Integral Ad Science, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Integral Ad Science has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Integral Ad Science and Omnicom Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integral Ad Science	0	6	6	0	2.50
Omnicom Group	0	4	4	0	2.50

Integral Ad Science presently has a consensus target price of $13.55, indicating a potential upside of 49.72%. Omnicom Group has a consensus target price of $94.4286, indicating a potential upside of 23.82%. Given Integral Ad Science’s higher probable upside, analysts clearly believe Integral Ad Science is more favorable than Omnicom Group.

Insider & Institutional Ownership

95.8% of Integral Ad Science shares are owned by institutional investors. Comparatively, 92.0% of Omnicom Group shares are owned by institutional investors. 2.0% of Integral Ad Science shares are owned by insiders. Comparatively, 1.0% of Omnicom Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Integral Ad Science beats Omnicom Group on 8 of the 13 factors compared between the two stocks.

About Integral Ad Science

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, France, Ireland, Germany, Italy, Singapore, Australia, Japan, India, and the Nordics. The company provides IAS Signal, a cloud-based technology platform that offers return on ad spend needs; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. In addition, the company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

About Omnicom Group

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing and post-production, digital transformation consulting, entertainment marketing, experiential marketing, field marketing, sales support, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, retail media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, retail marketing, retail media and e-commerce, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.