National CineMedia (NASDAQ:NCMI) vs. Publicis Groupe (OTCMKTS:PUBGY) Financial Survey

National CineMedia (NASDAQ:NCMI) and Publicis Groupe (OTCMKTS:PUBGY) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for National CineMedia and Publicis Groupe, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National CineMedia	1	2	3	0	2.33
Publicis Groupe	0	1	0	2	3.33

National CineMedia presently has a consensus price target of $5.38, indicating a potential upside of 71.18%. Given National CineMedia’s higher probable upside, equities analysts clearly believe National CineMedia is more favorable than Publicis Groupe.

Earnings and Valuation

This table compares National CineMedia and Publicis Groupe”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National CineMedia	$242.30 million	1.22	-$10.60 million	($0.09)	-34.89
Publicis Groupe	$19.68 billion	1.25	$1.87 billion	N/A	N/A

Publicis Groupe has higher revenue and earnings than National CineMedia.

Dividends

National CineMedia pays an annual dividend of $0.12 per share and has a dividend yield of 3.8%. Publicis Groupe pays an annual dividend of $0.75 per share and has a dividend yield of 3.1%. National CineMedia pays out -133.3% of its earnings in the form of a dividend.

Insider and Institutional Ownership

69.5% of National CineMedia shares are held by institutional investors. Comparatively, 0.1% of Publicis Groupe shares are held by institutional investors. 1.7% of National CineMedia shares are held by insiders. Comparatively, 1.0% of Publicis Groupe shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares National CineMedia and Publicis Groupe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National CineMedia	-3.47%	-1.80%	-1.37%
Publicis Groupe	N/A	N/A	N/A

Risk and Volatility

National CineMedia has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Publicis Groupe has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Summary

Publicis Groupe beats National CineMedia on 8 of the 15 factors compared between the two stocks.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.

About Publicis Groupe

Publicis Groupe S.A. provides marketing, communications, and digital business transformation services in North America, Europe, the Asia Pacific, Latin America, Africa, and the Middle East. The company offers advisory services for brand strategy, and repositioning and their identity under the Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, Marcel, Fallon, and BBH brands; online advertising services under the Razorfish and Moxie brand names; crisis communications, press relations, public affairs, institutional relations, financial communications, and strategy management services; media consulting, planning, and buying services; performance marketing services; and e-commerce services. It also designs and delivers brand content for various channels, such as television, print, radio, cinema, and billboards, as well as digital, including display and social networks under the Prodigious, Harbor, and The Pub brand names. In addition, the company operates Epsilon PeopleCloud, a unified data and technology platform; and Publicis Sapient, a technological, digital, and consulting platform. Further, it provides healthcare communication services under the Digitas Health, Publicis Health Media, and Saatchi & Saatchi Wellness brands for the healthcare and well-being sectors. It serves clients in the automotive, retail, financial services, consumer products, and media sectors. Publicis Groupe S.A. was founded in 1926 and is headquartered in Paris, France.