Marin Software (NASDAQ:MRIN) versus Omnicom Group (NYSE:OMC) Financial Review

Omnicom Group (NYSE:OMC) and Marin Software (NASDAQ:MRIN) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Institutional and Insider Ownership

92.0% of Omnicom Group shares are held by institutional investors. Comparatively, 9.5% of Marin Software shares are held by institutional investors. 1.0% of Omnicom Group shares are held by company insiders. Comparatively, 9.3% of Marin Software shares are held by company 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.

Valuation and Earnings

This table compares Omnicom Group and Marin Software”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicom Group	$15.69 billion	0.88	$1.48 billion	$6.97	10.20
Marin Software	$17.73 million	0.16	-$21.92 million	($3.93)	-0.23

Omnicom Group has higher revenue and earnings than Marin Software. Marin Software is trading at a lower price-to-earnings ratio than Omnicom Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Omnicom Group and Marin Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicom Group	0	4	4	0	2.50
Marin Software	0	0	0	0	0.00

Omnicom Group currently has a consensus target price of $94.43, indicating a potential upside of 32.79%. Given Omnicom Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Omnicom Group is more favorable than Marin Software.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicom Group	8.67%	33.62%	5.61%
Marin Software	N/A	N/A	N/A

Volatility & Risk

Omnicom Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Marin Software has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Omnicom Group beats Marin Software on 13 of the 14 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 Marin Software

Marin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, the United Kingdom, and internationally. It offers MarinOne, a search, social, and eCommerce advertising platform, as well as self-serves solutions and managed services. The company markets and sells its solutions to advertisers directly, and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.