CMG Holdings Group (OTCMKTS:CMGO) versus Stagwell (NASDAQ:STGW) Critical Analysis

CMG Holdings Group (OTCMKTS:CMGO) and Stagwell (NASDAQ:STGW) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CMG Holdings Group	N/A	N/A	N/A
Stagwell	-0.06%	14.54%	2.79%

Volatility & Risk

CMG Holdings Group has a beta of -0.38, meaning that its share price is 138% less volatile than the S&P 500. Comparatively, Stagwell has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Institutional & Insider Ownership

35.6% of Stagwell shares are held by institutional investors. 3.3% of CMG Holdings Group shares are held by insiders. Comparatively, 5.6% of Stagwell 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 & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMG Holdings Group	$2.04 million	0.15	-$120,000.00	N/A	N/A
Stagwell	$2.84 billion	0.49	$2.26 million	N/A	N/A

Stagwell has higher revenue and earnings than CMG Holdings Group.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CMG Holdings Group and Stagwell, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMG Holdings Group	0	0	0	0	0.00
Stagwell	0	3	3	0	2.50

Stagwell has a consensus price target of $8.17, suggesting a potential upside of 51.61%. Given Stagwell’s stronger consensus rating and higher possible upside, analysts plainly believe Stagwell is more favorable than CMG Holdings Group.

Summary

Stagwell beats CMG Holdings Group on 11 of the 12 factors compared between the two stocks.

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.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.