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OMC vs WPP
Revenue, margins, valuation, and 5-year total return — side by side.
Advertising Agencies
OMC vs WPP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Advertising Agencies | Advertising Agencies |
| Market Cap | $23.87B | $4.00B |
| Revenue (TTM) | $19.82B | $29.03B |
| Net Income (TTM) | $63M | $584M |
| Gross Margin | 16.8% | 16.3% |
| Operating Margin | 13.7% | 6.7% |
| Forward P/E | 7.2x | 7.4x |
| Total Debt | $12.78B | $6.35B |
| Cash & Equiv. | $6.88B | $2.64B |
OMC vs WPP — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Omnicom Group Inc. (OMC) | 100 | 140.4 | +40.4% |
| WPP plc (WPP) | 100 | 49.0 | -51.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: OMC vs WPP
Each card shows where this stock fits in a portfolio — not just who wins on paper.
OMC carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 10.1%, EPS growth -103.6%, 3Y rev CAGR 6.5%
- 23.1% 10Y total return vs WPP's -59.1%
- Lower volatility, beta 0.60, Low D/E 97.9%, current ratio 0.93x
WPP is the clearest fit if your priority is income & stability.
- Dividend streak 4 yrs, beta 1.08, yield 14.2%
- 2.0% margin vs OMC's 0.3%
- 14.2% yield, 4-year raise streak, vs OMC's 3.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 10.1% revenue growth vs WPP's -0.7% | |
| Value | Lower P/E (7.2x vs 7.4x) | |
| Quality / Margins | 2.0% margin vs OMC's 0.3% | |
| Stability / Safety | Beta 0.60 vs WPP's 1.08, lower leverage | |
| Dividends | 14.2% yield, 4-year raise streak, vs OMC's 3.5% | |
| Momentum (1Y) | +5.2% vs WPP's -46.4% | |
| Efficiency (ROA) | 2.5% ROA vs OMC's 0.2%, ROIC 12.5% vs 14.5% |
OMC vs WPP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
OMC 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)
OMC leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
WPP and OMC operate at a comparable scale, with $29.0B and $19.8B in trailing revenue. Profitability is closely matched — net margins range from 2.0% (WPP) to 0.3% (OMC). On growth, OMC holds the edge at +69.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $19.8B | $29.0B |
| EBITDAEarnings before interest/tax | $3.1B | $2.6B |
| Net IncomeAfter-tax profit | $63M | $584M |
| Free Cash FlowCash after capex | $3.0B | $1.7B |
| Gross MarginGross profit ÷ Revenue | +16.8% | +16.3% |
| Operating MarginEBIT ÷ Revenue | +13.7% | +6.7% |
| Net MarginNet income ÷ Revenue | +0.3% | +2.0% |
| FCF MarginFCF ÷ Revenue | +15.1% | +5.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +69.2% | -7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +40.7% | -78.9% |
Valuation Metrics
WPP leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, WPP's 3.7x EV/EBITDA is more attractive than OMC's 10.4x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $23.9B | $4.0B |
| Enterprise ValueMkt cap + debt − cash | $29.8B | $9.0B |
| Trailing P/EPrice ÷ TTM EPS | -284.87x | 5.57x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.23x | 7.40x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 10.40x | 3.66x |
| Price / SalesMarket cap ÷ Revenue | 1.38x | 0.20x |
| Price / BookPrice ÷ Book value/share | 1.21x | 0.80x |
| Price / FCFMarket cap ÷ FCF | 8.56x | 2.51x |
Profitability & Efficiency
WPP leads this category, winning 5 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 $1 for OMC. OMC carries lower financial leverage with a 0.98x debt-to-equity ratio, signaling a more conservative balance sheet compared to WPP's 1.70x. On the Piotroski fundamental quality scale (0–9), WPP scores 7/9 vs OMC's 2/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +0.7% | +17.1% |
| ROA (TTM)Return on assets | +0.2% | +2.5% |
| ROICReturn on invested capital | +14.5% | +12.5% |
| ROCEReturn on capital employed | +13.5% | +13.0% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 7 |
| Debt / EquityFinancial leverage | 0.98x | 1.70x |
| Net DebtTotal debt minus cash | $5.9B | $3.7B |
| Cash & Equiv.Liquid assets | $6.9B | $2.6B |
| Total DebtShort + long-term debt | $12.8B | $6.3B |
| Interest CoverageEBIT ÷ Interest expense | 2.51x | 2.37x |
Total Returns (Dividends Reinvested)
OMC leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in OMC five years ago would be worth $10,808 today (with dividends reinvested), compared to $4,340 for WPP. Over the past 12 months, OMC leads with a +5.2% total return vs WPP's -46.4%. The 3-year compound annual growth rate (CAGR) favors OMC at -2.4% vs WPP's -23.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -4.4% | -19.1% |
| 1-Year ReturnPast 12 months | +5.2% | -46.4% |
| 3-Year ReturnCumulative with dividends | -7.0% | -54.7% |
| 5-Year ReturnCumulative with dividends | +8.1% | -56.6% |
| 10-Year ReturnCumulative with dividends | +23.1% | -59.1% |
| CAGR (3Y)Annualised 3-year return | -2.4% | -23.2% |
Risk & Volatility
OMC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
OMC is the less volatile stock with a 0.60 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. OMC currently trades 88.2% 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 | 0.60x | 1.08x |
| 52-Week HighHighest price in past year | $87.17 | $40.95 |
| 52-Week LowLowest price in past year | $66.33 | $14.81 |
| % of 52W HighCurrent price vs 52-week peak | +88.2% | +45.3% |
| RSI (14)Momentum oscillator 0–100 | 53.7 | 65.1 |
| Avg Volume (50D)Average daily shares traded | 4.3M | 627K |
Analyst Outlook
WPP leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates OMC as "Hold" and WPP as "Hold". For income investors, WPP offers the higher dividend yield at 14.21% vs OMC's 3.49%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $93.67 | — |
| # AnalystsCovering analysts | 34 | 13 |
| Dividend YieldAnnual dividend ÷ price | +3.5% | +14.2% |
| Dividend StreakConsecutive years of raises | 0 | 4 |
| Dividend / ShareAnnual DPS | $2.68 | $1.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.0% | +2.8% |
OMC leads in 3 of 6 categories (Income & Cash Flow, Total Returns). WPP leads in 3 (Valuation Metrics, Profitability & Efficiency).
OMC vs WPP: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is OMC or WPP a better buy right now?
For growth investors, Omnicom Group Inc.
(OMC) is the stronger pick with 10. 1% revenue growth year-over-year, versus -0. 7% for WPP plc (WPP). 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 Omnicom Group Inc. (OMC) 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 — OMC or WPP?
On forward P/E, Omnicom Group Inc.
is actually cheaper at 7. 2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — OMC or WPP?
Over the past 5 years, Omnicom Group Inc.
(OMC) delivered a total return of +8. 1%, compared to -56. 6% for WPP plc (WPP). Over 10 years, the gap is even starker: OMC returned +23. 1% 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 — OMC or WPP?
By beta (market sensitivity over 5 years), Omnicom Group Inc.
(OMC) is the lower-risk stock at 0. 60β versus WPP plc's 1. 08β — meaning WPP is approximately 79% more volatile than OMC relative to the S&P 500. On balance sheet safety, Omnicom Group Inc. (OMC) carries a lower debt/equity ratio of 98% versus 170% for WPP plc — giving it more financial flexibility in a downturn.
05Which is growing faster — OMC or WPP?
By revenue growth (latest reported year), Omnicom Group Inc.
(OMC) is pulling ahead at 10. 1% versus -0. 7% for WPP plc (WPP). On earnings-per-share growth, the picture is similar: WPP plc grew EPS 390. 0% year-over-year, compared to -103. 6% for Omnicom Group Inc.. Over a 3-year CAGR, OMC leads at 6. 5% 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 — OMC or WPP?
WPP plc (WPP) is the more profitable company, earning 3.
7% net margin versus -0. 3% for Omnicom Group Inc. — meaning it keeps 3. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OMC leads at 15. 0% versus 9. 0% for WPP. At the gross margin level — before operating expenses — OMC leads at 17. 3%, 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 OMC or WPP more undervalued right now?
On forward earnings alone, Omnicom Group Inc.
(OMC) trades at 7. 2x forward P/E versus 7. 4x for WPP plc — 0. 2x cheaper on a one-year earnings basis.
08Which pays a better dividend — OMC or WPP?
All stocks in this comparison pay dividends.
WPP plc (WPP) offers the highest yield at 14. 2%, versus 3. 5% for Omnicom Group Inc. (OMC).
09Is OMC or WPP better for a retirement portfolio?
For long-horizon retirement investors, Omnicom Group Inc.
(OMC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 60), 3. 5% yield). Both have compounded well over 10 years (OMC: +23. 1%, 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 OMC 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.
In terms of investment character: OMC is a mid-cap income-oriented stock; WPP is a small-cap deep-value stock. 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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- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 34%
- Dividend Yield > 1.3%
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