Reviewing WPP (WPP) and AirMedia Group (AMCN)

WPP (NYSE:WPP) and AirMedia Group (NASDAQ:AMCN) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares WPP and AirMedia Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WPP $19.67 billion 0.76 $2.34 billion $7.76 7.60
AirMedia Group $23.75 million 1.06 -$156.47 million N/A N/A

WPP has higher revenue and earnings than AirMedia Group.

Institutional and Insider Ownership

5.1% of WPP shares are held by institutional investors. Comparatively, 0.9% of AirMedia Group shares are held by institutional investors. 17.9% of WPP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for WPP and AirMedia Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WPP 3 6 2 0 1.91
AirMedia Group 0 0 0 0 N/A

Dividends

WPP pays an annual dividend of $3.00 per share and has a dividend yield of 5.1%. AirMedia Group does not pay a dividend. WPP pays out 38.7% of its earnings in the form of a dividend.

Risk & Volatility

WPP has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, AirMedia Group has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares WPP and AirMedia Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WPP N/A N/A N/A
AirMedia Group N/A N/A N/A

Summary

WPP beats AirMedia Group on 7 of the 9 factors compared between the two stocks.

About WPP

WPP plc provides various communications services worldwide. The company operates through four segments: Advertising and Media Investment Management; Data Investment Management; Public Relations & Public Affairs; and Branding Consulting, Health & Wellness and Specialist Communications. The Advertising and Media Investment Management segment provides advertising services; and media planning and buying, and specialist sponsorship, and branded entertainment services. The Data Investment Management segment offers brand, consumer, media, and marketplace insight services. The Public Relations & Public Affairs segment provides corporate, consumer, financial, and brand-building services. The Branding Consulting, Health & Wellness and Specialist Communications segment is involved in consumer, corporate, and employee branding and design services, covering identity, packaging, literature, events, and training and architecture, as well as advertising, medical education, and online marketing. This segment also offers specialist communications services, such as custom media and multicultural marketing; event, sports, youth, and entertainment marketing; corporate and business-to-business; and media, technology, and production services. The company also provides specialist customer, channel, direct, field, retail, promotional, and point-of-sale services. WPP plc was founded in 1985 and is based in London, the United Kingdom.

About AirMedia Group

AirMedia Group Inc. operates out-of-home advertising platforms primarily in the People's Republic of China. The company operates a network of digital (television) TV screens on planes operated by 6 airlines; and gas station media network, as well as other outdoor media advertising platforms in gas stations. It also displays non-advertising content, such as weather, sports, and comedy clips; and TV programs, including documentaries and hidden camera type reality shows from other third-party content providers, as well as offers in-flight advertising and non-advertising content. In addition, the company holds concession rights to operate various traditional advertising media comprising light boxes, billboards, and display advertising; and install and operate Wi-Fi systems on trains administered by 10 regional railway bureaus, as well as on long-haul buses. Further, it operates CIBN-AirMedia channel to broadcast network TV programs to air travelers. AirMedia Group Inc. was founded in 2005 and is headquartered in Beijing, the People's Republic of China.

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