Reviewing CMG Holdings Group (OTCMKTS:CMGO) and Omnicom Group (NYSE:OMC)

Omnicom Group (NYSE:OMC) and CMG Holdings Group (OTCMKTS:CMGO) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	8.31%	33.30%	5.73%
CMG Holdings Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Omnicom Group and CMG Holdings Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$15.69 billion	0.98	$1.48 billion	$6.77	11.81
CMG Holdings Group	$2.04 million	0.00	-$120,000.00	N/A	N/A

Omnicom Group has higher revenue and earnings than CMG Holdings Group.

Volatility and Risk

Omnicom Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, CMG Holdings Group has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500.

Insider and Institutional Ownership

92.0% of Omnicom Group shares are owned by institutional investors. 1.0% of Omnicom Group shares are owned by insiders. Comparatively, 3.3% of CMG Holdings Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Omnicom Group and CMG Holdings Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	0	5	4	0	2.44
CMG Holdings Group	0	0	0	0	0.00

Omnicom Group currently has a consensus price target of $92.57, suggesting a potential upside of 15.79%. Given Omnicom Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Omnicom Group is more favorable than CMG Holdings Group.

Summary

Omnicom Group beats CMG Holdings Group on 10 of the 11 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 CMG Holdings Group

CMG Holdings Group, Inc., a marketing communications company, operates organizations in the alternative advertising, digital media, experiential and interactive marketing, and entertainment industries in the United States. It operates through XA The Experiential Agency, Inc.; and CMG Holding Group segments. The company is involved in the production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. It also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks for the design and development of individual broadcasting digital media channels, as well as to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. In addition, the company develops, manages, and executes sales promotion programs. It serves clients operating in the marketing communication industry. The company was formerly known as CMG Holdings, Inc. and changed its name to CMG Holdings Group, Inc. in October 2011. CMG Holdings Group, Inc. was founded in 2002 and is based in Chicago, Illinois.