Critical Comparison: Creative Realities (NASDAQ:CREX) and Omnicom Group (NYSE:OMC)
by Tristan Rich · The Markets DailyCreative Realities (NASDAQ:CREX – Get Free Report) and Omnicom Group (NYSE:OMC – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
Profitability
This table compares Creative Realities and Omnicom Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Creative Realities | -29.29% | -88.21% | -13.51% |
| Omnicom Group | 1.74% | 24.73% | 5.15% |
Risk and Volatility
Creative Realities has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Omnicom Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Institutional & Insider Ownership
41.3% of Creative Realities shares are owned by institutional investors. Comparatively, 92.0% of Omnicom Group shares are owned by institutional investors. 26.8% of Creative Realities shares are owned by insiders. Comparatively, 1.2% of Omnicom Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Creative Realities and Omnicom Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Creative Realities | 1 | 1 | 2 | 0 | 2.25 |
| Omnicom Group | 1 | 6 | 4 | 0 | 2.27 |
Creative Realities presently has a consensus target price of $8.00, indicating a potential upside of 222.58%. Omnicom Group has a consensus target price of $99.00, indicating a potential upside of 32.60%. Given Creative Realities’ higher possible upside, analysts plainly believe Creative Realities is more favorable than Omnicom Group.
Earnings and Valuation
This table compares Creative Realities and Omnicom Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Creative Realities | $57.23 million | 0.59 | -$8.28 million | ($2.11) | -1.18 |
| Omnicom Group | $17.27 billion | 1.19 | -$54.50 million | $1.16 | 64.36 |
Creative Realities has higher earnings, but lower revenue than Omnicom Group. Creative Realities is trading at a lower price-to-earnings ratio than Omnicom Group, indicating that it is currently the more affordable of the two stocks.
Summary
Omnicom Group beats Creative Realities on 10 of the 14 factors compared between the two stocks.
About Creative Realities
Creative Realities, Inc., together with its subsidiaries, provides digital marketing technology and solutions in the United States and internationally. It offers digital signage and media solutions to enhance communications in a wide-ranging variety of out-of-home environments. The company’s solutions include digital merchandising systems and omni-channel customer engagement systems; interactive digital shopping assistants; advisors and kiosks; and other interactive marketing technologies, such as mobile, social media, point-of-sale transactions, beaconing, and web-based media that enables its customers to engage with their consumers. It also provides hardware system design/engineering, hardware installation, content development, content scheduling, post-deployment network and field support, and media sales, as well as media management and distribution software platforms and networks; device and product management; and customized software service layers, systems, experiences, workflows, and integrated solutions. The company sells its solutions to the automotive, retail, digital out of home comprising advertising networks and retail media networks, foodservice/quick-serve restaurants, financial services, gaming, and sports and entertainment venues. Creative Realities, Inc. is headquartered in Louisville, Kentucky.
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.