WPP plc American Depositary Shares (NYSE: WPP) and Switch (NYSE:SWCH) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
This table compares WPP plc American Depositary Shares and Switch’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WPP plc American Depositary Shares||N/A||N/A||N/A|
WPP plc American Depositary Shares pays an annual dividend of $3.85 per share and has a dividend yield of 4.9%. Switch pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%.
This is a breakdown of recent ratings and recommmendations for WPP plc American Depositary Shares and Switch, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WPP plc American Depositary Shares||3||7||1||0||1.82|
Switch has a consensus price target of $22.20, indicating a potential upside of 39.80%. Given Switch’s stronger consensus rating and higher possible upside, analysts plainly believe Switch is more favorable than WPP plc American Depositary Shares.
Insider and Institutional Ownership
4.8% of WPP plc American Depositary Shares shares are held by institutional investors. Comparatively, 14.1% of Switch shares are held by institutional investors. 1.0% of WPP plc American Depositary Shares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares WPP plc American Depositary Shares and Switch’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WPP plc American Depositary Shares||$19.67 billion||1.01||$2.34 billion||N/A||N/A|
|Switch||$318.35 million||12.60||$31.36 million||N/A||N/A|
WPP plc American Depositary Shares has higher revenue and earnings than Switch.
Switch beats WPP plc American Depositary Shares on 5 of the 9 factors compared between the two stocks.
About WPP plc American Depositary Shares
WPP PLC is a parent company that, through its subsidiaries, is engaged in the provision of communications and marketing services worldwide. The Company has four segments: Advertising and Media Investment Management; Consumer Insight (formerly Information, Insight & Consultancy); Public Relations & Public Affairs, and Branding & Identity, Healthcare and Specialist Communications, which includes WPP Digital and direct, digital, promotional and relationship marketing. It comprises companies in disciplines, such as advertising, media investment management, consumer insight, public relations and public affairs, branding and identity, healthcare communications, specialist communications, and direct, digital, promotion and relationship marketing. As of December 31, 2009, WPP PLC operated through 2,400 offices in 107 countries. In February 2009, the Company acquired Red Dot Square Solutions. In May 2010, the Company acquired Midia Digital and I-Cherry, two of the digital agencies in Brazil.
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services to technology and digital media companies, cloud and managed service providers, financial institutions, government agencies, and telecommunications providers that conduct critical business on the Internet. It develops and operates data centers in Nevada and Michigan. The company was founded in 2000 and is headquartered in Las Vegas, Nevada.
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