Financial Analysis: Interpublic Group of Companies (NYSE:IPG) versus AdTheorent (NASDAQ:ADTH)

Interpublic Group of Companies (NYSE:IPG) and AdTheorent (NASDAQ:ADTH) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares Interpublic Group of Companies and AdTheorent’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interpublic Group of Companies	$10.89 billion	1.05	$1.10 billion	$2.85	10.62
AdTheorent	$170.81 million	1.70	$10,000.00	($0.01)	-319.00

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

Institutional and Insider Ownership

98.4% of Interpublic Group of Companies shares are owned by institutional investors. Comparatively, 37.7% of AdTheorent shares are owned by institutional investors. 0.3% of Interpublic Group of Companies shares are owned by company insiders. Comparatively, 7.1% of AdTheorent shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Interpublic Group of Companies and AdTheorent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interpublic Group of Companies	10.09%	30.52%	6.58%
AdTheorent	N/A	0.07%	0.06%

Analyst Ratings

This is a breakdown of current ratings and price targets for Interpublic Group of Companies and AdTheorent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interpublic Group of Companies	0	4	3	0	2.43
AdTheorent	0	2	2	0	2.50

Interpublic Group of Companies presently has a consensus price target of $35.25, suggesting a potential upside of 16.45%. AdTheorent has a consensus price target of $4.69, suggesting a potential upside of 46.94%. Given AdTheorent’s stronger consensus rating and higher possible upside, analysts clearly believe AdTheorent is more favorable than Interpublic Group of Companies.

Volatility and Risk

Interpublic Group of Companies has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, AdTheorent has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Summary

Interpublic Group of Companies beats AdTheorent on 9 of the 14 factors compared between the two stocks.

About Interpublic Group of Companies

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in three segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment provides media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience under the IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA brand names. The Integrated Advertising & Creativity Led Solutions segment offers advertising, corporate, and brand identity services; and strategic consulting under FCB, IPG Health, McCann Worldgroup, and MullenLowe Group brands. Specialized Communications & Experiential Solutions segment provides public relations and other specialized communications services, live events, sports and entertainment marketing, and strategic consulting under IPG DXTRA Health, The Weber Shandwick Collective, Golin, Jack Morton, Momentum, and Octagon brand names. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

About AdTheorent

AdTheorent Holding Company, Inc., a digital media platform, provides programmatic digital advertising services for advertising agency and brand customers in the United States, Canada, and internationally. It uses machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers. The company offers predictive targeting solutions across various customer industry verticals and consumer screens, including customized targeting, measurement, and analytical services; and location-based targeting and geo-intelligence solutions. AdTheorent Holding Company, Inc. was founded in 2012 and is headquartered in New York, New York.