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How Does Interpublic Group of Companies Compare to Its Peers?

Gabriel Kane

Key US Equity Market Updates for October 21

(Continued from Prior Part)

Interpublic Group and its peers

In this article, we’ll compare Interpublic Group of Companies with its peers:

  • The PE (price-to-earnings) ratios of the Interpublic Group of Companies (IPG), Omnicom Group (OMC), Alliance Data Systems (ADS), and Outfront Media (OUT) are 17.66x, 16.44x, 32.46x, and 9.57x, respectively.
  • The PBV (price-to-book value) ratios of Interpublic Group of Companies, Omnicom, Alliance Data, and Outfront Media are 4.50x, 6.72x, 8.72x, and 2.36x, respectively.
  • The PS (price-to-sales) ratios of Interpublic Group of Companies, Omnicom, Alliance Data, Outfront Media, and MDC Partners (MDCA) are 1.17x, 1.16x, 2.87x, 2.22x, and 0.89x, respectively.

According to the above findings, Interpublic Group of Companies’ peers have outperformed the company based on PBV. However, Interpublic Group of Companies is way ahead of its peers based on PE.

ETFs that invest in Interpublic Group of Companies

The PowerShares Dynamic Media ETF (PBS) invests 2.8% of its holdings in Interpublic Group. The ETF tracks an index of US media industry stocks. The index uses multifactor selection and tiered equal weighting.

The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.2% of its holdings in Interpublic Group. The ETF tracks an equal-weighted index of large-cap US Consumer Discretionary stocks drawn from the S&P 500.

The Guggenheim Mid-Cap Core ETF (CZA) invests 1.1% of its holdings in Interpublic Group. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 mid-cap stocks that seeks to outperform pure market-cap indexes.

Comparing Interpublic Group of Companies and its ETFs

Now let’s compare Interpublic Group with the ETFs that invest in it:

  • The year-to-date price movement of Interpublic Group of Companies, PBS, RCD, and CZA are 6.4%, 1.4%, 1.3%, and 0.6%, respectively.
  • The PE (price-to-earnings) ratios of Interpublic Group of Companies, PBS, RCD, and CZA are 17.7x, 17.6x, 15.3x, and 16.9x, respectively.
  • The PBV (price-to-book value) ratios of Interpublic Group of Companies, PBS, RCD, and CZA are 4.5x, 4.5x, 3.7x, and 2.2x, respectively.

Thus, Interpublic Group of Companies has outperformed its ETFs based on price movement, PE, and PBV.

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