Tremor Video (NYSE: TRMR) and Omnicom Group (NYSE:OMC) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, risk, valuation, earnings, institutional ownership and dividends.
Profitability
This table compares Tremor Video and Omnicom Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tremor Video | -7.11% | -16.26% | -8.92% |
| Omnicom Group | 7.61% | 42.54% | 5.22% |
Institutional and Insider Ownership
36.4% of Tremor Video shares are owned by institutional investors. Comparatively, 98.7% of Omnicom Group shares are owned by institutional investors. 8.2% of Tremor Video shares are owned by insiders. Comparatively, 1.1% of Omnicom Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Tremor Video has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Dividends
Omnicom Group pays an annual dividend of $2.20 per share and has a dividend yield of 2.8%. Tremor Video does not pay a dividend. Omnicom Group pays out 44.4% of its earnings in the form of a dividend. Omnicom Group has increased its dividend for 7 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Tremor Video and Omnicom Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tremor Video | 0 | 1 | 2 | 0 | 2.67 |
| Omnicom Group | 1 | 10 | 1 | 0 | 2.00 |
Tremor Video presently has a consensus price target of $3.13, suggesting a potential upside of 40.13%. Omnicom Group has a consensus price target of $85.36, suggesting a potential upside of 7.78%. Given Tremor Video’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tremor Video is more favorable than Omnicom Group.
Earnings & Valuation
This table compares Tremor Video and Omnicom Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Tremor Video | $173.60 million | 0.64 | -$7.73 million | ($0.27) | -8.26 |
| Omnicom Group | $15.41 billion | 1.19 | $2.32 billion | $4.95 | 16.00 |
Omnicom Group has higher revenue and earnings than Tremor Video. Tremor Video is trading at a lower price-to-earnings ratio than Omnicom Group, indicating that it is currently the more affordable of the two stocks.
Summary
Omnicom Group beats Tremor Video on 10 of the 16 factors compared between the two stocks.
About Tremor Video
Tremor Video, Inc. is an advertising technology company. The Company provides software for video advertising effectiveness. The Company operates through online video advertising services segment. Its technology optimizes performance of video advertisement campaigns across all screens, including computers, smartphones, tablets and connected televisions. The Company’s buyer platform enables advertisers, agencies and other buyers of advertising to discover, buy, optimize and measure the effectiveness of their video advertisement campaigns. The Company’s technology analyzes video content, detects viewer and system attributes, and uses its repository of stored third-party data to optimize and target the delivery of advertisement campaigns. Its buyers can transact directly on its buyer platform through the Tremor Video DSP, a user interface that allows them to manage the execution of their campaigns on a programmatic basis. The Company also offers a seller platform, the Tremor Video SSP.
About Omnicom Group
Omnicom Group Inc. is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications. The Company caters to various industry sectors, such as food and beverage, consumer products, pharmaceuticals and healthcare, financial services, technology, travel and entertainment, telecommunications and retail. The Company’s branded networks and agencies conduct business on a global basis and operate in the geographic regions, such as The Americas, which includes North America and Latin America; EMEA, which includes Europe, the Middle East and Africa, and Asia Pacific, which includes Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries.
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