Critical Comparison: Omnicom Group (NYSE:OMC) & Radio One (NASDAQ:UONE)

Omnicom Group (NYSE:OMC) and Radio One (NASDAQ:UONE) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Omnicom Group and Radio One”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$17.27 billion	1.21	-$54.50 million	$1.16	65.77
Radio One	$353.91 million	0.05	-$146.87 million	($15.11)	-0.27

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

Institutional and Insider Ownership

92.0% of Omnicom Group shares are owned by institutional investors. Comparatively, 8.2% of Radio One shares are owned by institutional investors. 1.2% of Omnicom Group shares are owned by insiders. Comparatively, 47.2% of Radio One shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Omnicom Group and Radio One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	1.74%	24.73%	5.15%
Radio One	-19.04%	-7.13%	-0.43%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Omnicom Group and Radio One, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	1	6	4	0	2.27
Radio One	1	0	0	0	1.00

Omnicom Group presently has a consensus price target of $99.00, suggesting a potential upside of 29.76%. Given Omnicom Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Omnicom Group is more favorable than Radio One.

Volatility & Risk

Omnicom Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Radio One has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Summary

Omnicom Group beats Radio One on 12 of the 14 factors compared between the two stocks.

About Omnicom Group

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing and post-production, digital transformation consulting, entertainment marketing, experiential marketing, field marketing, sales support, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, retail media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, retail marketing, retail media and e-commerce, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.