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IPG vs WPP
Revenue, margins, valuation, and 5-year total return — side by side.
Advertising Agencies
IPG vs WPP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Advertising Agencies | Advertising Agencies |
| Market Cap | $8.93B | $4.00B |
| Revenue (TTM) | $10.21B | $29.03B |
| Net Income (TTM) | $552M | $584M |
| Gross Margin | 18.2% | 16.3% |
| Operating Margin | 9.7% | 6.7% |
| Forward P/E | 7.8x | 7.4x |
| Total Debt | $4.25B | $6.35B |
| Cash & Equiv. | $2.19B | $2.64B |
IPG vs WPP — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | Nov 25 | Return |
|---|---|---|---|
| The Interpublic Gro… (IPG) | 100 | 143.6 | +43.6% |
| WPP plc (WPP) | 100 | 50.1 | -49.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: IPG vs WPP
Each card shows where this stock fits in a portfolio — not just who wins on paper.
IPG carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 16 yrs, beta 0.65, yield 5.4%
- 45.6% 10Y total return vs WPP's -59.1%
- Lower volatility, beta 0.65, current ratio 1.09x
WPP is the clearest fit if your priority is growth exposure.
- Rev growth -0.7%, EPS growth 390.0%, 3Y rev CAGR 4.8%
- -0.7% revenue growth vs IPG's -1.8%
- Lower P/E (7.4x vs 7.8x)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -0.7% revenue growth vs IPG's -1.8% | |
| Value | Lower P/E (7.4x vs 7.8x) | |
| Quality / Margins | 5.4% margin vs WPP's 2.0% | |
| Stability / Safety | Beta 0.65 vs WPP's 1.08, lower leverage | |
| Dividends | 5.4% yield, 16-year raise streak, vs WPP's 14.2% | |
| Momentum (1Y) | +0.8% vs WPP's -46.4% | |
| Efficiency (ROA) | 3.2% ROA vs WPP's 2.5%, ROIC 14.7% vs 12.5% |
IPG vs WPP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
IPG vs WPP — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
IPG leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
WPP is the larger business by revenue, generating $29.0B annually — 2.8x IPG's $10.2B. Profitability is closely matched — net margins range from 5.4% (IPG) to 2.0% (WPP).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $10.2B | $29.0B |
| EBITDAEarnings before interest/tax | $1.2B | $2.6B |
| Net IncomeAfter-tax profit | $552M | $584M |
| Free Cash FlowCash after capex | $807M | $1.7B |
| Gross MarginGross profit ÷ Revenue | +18.2% | +16.3% |
| Operating MarginEBIT ÷ Revenue | +9.7% | +6.7% |
| Net MarginNet income ÷ Revenue | +5.4% | +2.0% |
| FCF MarginFCF ÷ Revenue | +7.9% | +5.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -5.1% | -7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +5.4% | -78.9% |
Valuation Metrics
WPP leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 5.6x trailing earnings, WPP trades at a 59% valuation discount to IPG's 13.4x P/E. On an enterprise value basis, WPP's 3.7x EV/EBITDA is more attractive than IPG's 7.5x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $8.9B | $4.0B |
| Enterprise ValueMkt cap + debt − cash | $11.0B | $9.0B |
| Trailing P/EPrice ÷ TTM EPS | 13.43x | 5.57x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.78x | 7.40x |
| PEG RatioP/E ÷ EPS growth rate | 7.78x | — |
| EV / EBITDAEnterprise value multiple | 7.52x | 3.66x |
| Price / SalesMarket cap ÷ Revenue | 0.83x | 0.20x |
| Price / BookPrice ÷ Book value/share | 2.37x | 0.80x |
| Price / FCFMarket cap ÷ FCF | 9.77x | 2.51x |
Profitability & Efficiency
IPG leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
WPP delivers a 17.1% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $15 for IPG. IPG carries lower financial leverage with a 1.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to WPP's 1.70x. On the Piotroski fundamental quality scale (0–9), IPG scores 8/9 vs WPP's 7/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +14.6% | +17.1% |
| ROA (TTM)Return on assets | +3.2% | +2.5% |
| ROICReturn on invested capital | +14.7% | +12.5% |
| ROCEReturn on capital employed | +13.7% | +13.0% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 1.09x | 1.70x |
| Net DebtTotal debt minus cash | $2.1B | $3.7B |
| Cash & Equiv.Liquid assets | $2.2B | $2.6B |
| Total DebtShort + long-term debt | $4.3B | $6.3B |
| Interest CoverageEBIT ÷ Interest expense | 4.90x | 2.37x |
Total Returns (Dividends Reinvested)
IPG leads this category, winning 5 of 5 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in IPG five years ago would be worth $9,138 today (with dividends reinvested), compared to $4,340 for WPP. Over the past 12 months, IPG leads with a +0.8% total return vs WPP's -46.4%. The 3-year compound annual growth rate (CAGR) favors IPG at -8.4% vs WPP's -23.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | — | -19.1% |
| 1-Year ReturnPast 12 months | +0.8% | -46.4% |
| 3-Year ReturnCumulative with dividends | -23.0% | -54.7% |
| 5-Year ReturnCumulative with dividends | -8.6% | -56.6% |
| 10-Year ReturnCumulative with dividends | +45.6% | -59.1% |
| CAGR (3Y)Annualised 3-year return | -8.4% | -23.2% |
Risk & Volatility
IPG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
IPG is the less volatile stock with a 0.65 beta — it tends to amplify market swings less than WPP's 1.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. IPG currently trades 86.5% from its 52-week high vs WPP's 45.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.65x | 1.08x |
| 52-Week HighHighest price in past year | $28.42 | $40.95 |
| 52-Week LowLowest price in past year | $22.55 | $14.81 |
| % of 52W HighCurrent price vs 52-week peak | +86.5% | +45.3% |
| RSI (14)Momentum oscillator 0–100 | 45.1 | 65.1 |
| Avg Volume (50D)Average daily shares traded | 81.3M | 627K |
Analyst Outlook
Evenly matched — IPG and WPP each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates IPG as "Hold" and WPP as "Hold". For income investors, WPP offers the higher dividend yield at 14.21% vs IPG's 5.35%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $36.57 | — |
| # AnalystsCovering analysts | 34 | 13 |
| Dividend YieldAnnual dividend ÷ price | +5.4% | +14.2% |
| Dividend StreakConsecutive years of raises | 16 | 4 |
| Dividend / ShareAnnual DPS | $1.31 | $1.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.6% | +2.8% |
IPG leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). WPP leads in 1 (Valuation Metrics). 1 tied.
IPG vs WPP: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is IPG or WPP a better buy right now?
For growth investors, WPP plc (WPP) is the stronger pick with -0.
7% revenue growth year-over-year, versus -1. 8% for The Interpublic Group of Companies, Inc. (IPG). WPP plc (WPP) offers the better valuation at 5. 6x trailing P/E (7. 4x forward), making it the more compelling value choice. Analysts rate The Interpublic Group of Companies, Inc. (IPG) a "Hold" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — IPG or WPP?
On trailing P/E, WPP plc (WPP) is the cheapest at 5.
6x versus The Interpublic Group of Companies, Inc. at 13. 4x. On forward P/E, WPP plc is actually cheaper at 7. 4x.
03Which is the better long-term investment — IPG or WPP?
Over the past 5 years, The Interpublic Group of Companies, Inc.
(IPG) delivered a total return of -8. 6%, compared to -56. 6% for WPP plc (WPP). Over 10 years, the gap is even starker: IPG returned +45. 6% versus WPP's -59. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — IPG or WPP?
By beta (market sensitivity over 5 years), The Interpublic Group of Companies, Inc.
(IPG) is the lower-risk stock at 0. 65β versus WPP plc's 1. 08β — meaning WPP is approximately 64% more volatile than IPG relative to the S&P 500. On balance sheet safety, The Interpublic Group of Companies, Inc. (IPG) carries a lower debt/equity ratio of 109% versus 170% for WPP plc — giving it more financial flexibility in a downturn.
05Which is growing faster — IPG or WPP?
By revenue growth (latest reported year), WPP plc (WPP) is pulling ahead at -0.
7% versus -1. 8% for The Interpublic Group of Companies, Inc. (IPG). On earnings-per-share growth, the picture is similar: WPP plc grew EPS 390. 0% year-over-year, compared to -35. 8% for The Interpublic Group of Companies, Inc.. Over a 3-year CAGR, WPP leads at 4. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — IPG or WPP?
The Interpublic Group of Companies, Inc.
(IPG) is the more profitable company, earning 6. 4% net margin versus 3. 7% for WPP plc — meaning it keeps 6. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IPG leads at 11. 3% versus 9. 0% for WPP. At the gross margin level — before operating expenses — IPG leads at 17. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is IPG or WPP more undervalued right now?
On forward earnings alone, WPP plc (WPP) trades at 7.
4x forward P/E versus 7. 8x for The Interpublic Group of Companies, Inc. — 0. 4x cheaper on a one-year earnings basis.
08Which pays a better dividend — IPG or WPP?
All stocks in this comparison pay dividends.
WPP plc (WPP) offers the highest yield at 14. 2%, versus 5. 4% for The Interpublic Group of Companies, Inc. (IPG).
09Is IPG or WPP better for a retirement portfolio?
For long-horizon retirement investors, The Interpublic Group of Companies, Inc.
(IPG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 65), 5. 4% yield). Both have compounded well over 10 years (IPG: +45. 6%, WPP: -59. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between IPG and WPP?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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