Interpublic Group of Companies (NYSE:IPG) and Starco Brands (NYSE:STCB) Critical Comparison

Interpublic Group of Companies (NYSE:IPG) and Starco Brands (OTCMKTS:STCB) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Dividends

Interpublic Group of Companies pays an annual dividend of $0.94 per share and has a dividend yield of 4.5%. Starco Brands does not pay a dividend. Interpublic Group of Companies pays out 50.5% of its earnings in the form of a dividend. Interpublic Group of Companies has increased its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Interpublic Group of Companies and Starco Brands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interpublic Group of Companies $9.71 billion 0.83 $618.90 million $1.86 11.21
Starco Brands $130,000.00 3,671.31 -$440,000.00 N/A N/A

Interpublic Group of Companies has higher revenue and earnings than Starco Brands.

Insider and Institutional Ownership

98.0% of Interpublic Group of Companies shares are held by institutional investors. 1.1% of Interpublic Group of Companies shares are held by insiders. Comparatively, 63.0% of Starco Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Interpublic Group of Companies and Starco Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpublic Group of Companies 0 4 4 0 2.50
Starco Brands 0 0 0 0 N/A

Interpublic Group of Companies currently has a consensus price target of $25.17, indicating a potential upside of 20.70%. Given Interpublic Group of Companies’ higher probable upside, research analysts plainly believe Interpublic Group of Companies is more favorable than Starco Brands.

Volatility and Risk

Interpublic Group of Companies has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Starco Brands has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Interpublic Group of Companies 6.46% 32.03% 4.89%
Starco Brands -45.34% N/A -114.39%

Summary

Interpublic Group of Companies beats Starco Brands on 10 of the 14 factors compared between the two stocks.

Interpublic Group of Companies Company Profile

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines. The company also provides various diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. It offers its services under various brands comprising McCann Worldgroup, Foote, Cone & Belding, IPG Mediabrands, Carmichael Lynch, Deutsch, Hill Holliday, and The Martin Agency, as well as Foote, Cone & Belding, and MullenLowe Group. 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.

Starco Brands Company Profile

Starco Brands, Inc. develops and markets a range of consumer packaged products in the United States. It provides products in various categories, including household cleaning, personal care, food, beverage and spirits, DIY hardware, and arts and crafts. The company sells its products through various retailers, as well as through online retailers. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was founded in 2010 and is based in Santa Monica, California.

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