System1 (NYSE:SST – Get Free Report) and Interpublic Group of Companies (NYSE:IPG – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Volatility & Risk
System1 has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Interpublic Group of Companies has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for System1 and Interpublic Group of Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| System1 | 1 | 0 | 1 | 0 | 2.00 |
| Interpublic Group of Companies | 0 | 6 | 3 | 0 | 2.33 |
Dividends
System1 pays an annual dividend of $0.32 per share and has a dividend yield of 4.1%. Interpublic Group of Companies pays an annual dividend of $1.32 per share and has a dividend yield of 5.1%. System1 pays out -3.3% of its earnings in the form of a dividend. Interpublic Group of Companies pays out 111.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Interpublic Group of Companies has raised its dividend for 13 consecutive years. Interpublic Group of Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
87.5% of System1 shares are owned by institutional investors. Comparatively, 98.4% of Interpublic Group of Companies shares are owned by institutional investors. 13.2% of System1 shares are owned by insiders. Comparatively, 0.4% of Interpublic Group of Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares System1 and Interpublic Group of Companies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| System1 | $317.06 million | 0.24 | -$74.67 million | ($9.63) | -0.80 |
| Interpublic Group of Companies | $10.69 billion | 0.90 | $689.50 million | $1.18 | 22.14 |
Interpublic Group of Companies has higher revenue and earnings than System1. System1 is trading at a lower price-to-earnings ratio than Interpublic Group of Companies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares System1 and Interpublic Group of Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| System1 | -22.43% | -92.07% | -15.92% |
| Interpublic Group of Companies | 4.27% | 28.72% | 6.22% |
Summary
Interpublic Group of Companies beats System1 on 13 of the 17 factors compared between the two stocks.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
About Interpublic Group of Companies
The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in three segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment provides media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience under the IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA brand names. The Integrated Advertising & Creativity Led Solutions segment offers advertising, corporate, and brand identity services; and strategic consulting under FCB, IPG Health, McCann Worldgroup, and MullenLowe Group brands. Specialized Communications & Experiential Solutions segment provides public relations and other specialized communications services, live events, sports and entertainment marketing, and strategic consulting under IPG DXTRA Health, The Weber Shandwick Collective, Golin, Jack Morton, Momentum, and Octagon brand names. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.
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