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Thursday, July 19, 2007

Advertising Agency Stocks: Are You Tempted to Buy?

The advertising industry have evolved significantly over the last several years, with TiVo’s [to skip ads], product placements, pay per clicks, pay per calls, pay per action, and many other advertising models. The three top advertising agency stocks were up over 25% during the last twelve months. Here are some advertising stocks worth viewing.

AdStar Inc. (ADST), which trades on NASDAQ, is in the business of providing technology services to the classified advertising industry using its proprietary software. Forward P/E is 42.3 and the P/S ratio is 5.05. This is a very low cap stock and should be considered very speculative.

Catalina Marketing Corp. (POS) provides behavior based marketing communications services. The stock has a P/E of 24.5, a PEG of 1.74, and a yield of 0.9%. The company is currently involved in a merger agreement with funds affiliated with Hellman & Friedman LLC.

EMAK Worldwide Inc. (EMAK), which also trades on NASDAQ, is a marketing services company that provides agency services, promotional products, and consumer products. Although the P/S ratio is 0.09, the earnings have been negative. This is a very low cap stock and should be considered very speculative.

Focus Media Holding Ltd. (FMCN), is a Shanghai based company which provides advertising networks using audiovisual television displays in China. The P/E is 53 and the PEG is 0.76.

Interpublic Group of Companies Inc. (IPG), which trades on the NYSE, is in the business of advertising and marketing services through two divisions, the Integrated Agency Network and the Constituency Management Group. It has been in business since 1902. The forward P/E is 20.8, the P/S is 0.84, and the PEG is 5.16. The company’s earnings call is scheduled for Tuesday, August 7.

Monster Worldwide Inc. (MNST), which although it could fall into several categories of industries, is definitely in the advertising business. It is one of the largest online employment web sites in the world. The P/E is 159, the P/S is 4.52, and a PEG of 1.14. Their earnings call scheduled for Monday, July 30.

Omnicom Group Inc. (OMC) is in the business of advertising, marketing, and corporate communications services. The P/E is 20.7, the PEG is 1.62, and the yield is 1.1%.

Publicis Groupe SA (PUB), which trades on the New York Stock Exchange, is a Paris based advertising company. The P/E is 16.3, the P/S is is 1.45, and the yield is 1.3%.

Triple Crown Media Inc. (TCMI) is in the business of providing collegiate marketing and production services, along with owning five newspapers. The stock has a P/E of 10.5, and a P/S of 0.32.

ValueClick Inc. (VCLK) provides advertising services for online advertiser. The P/E is 43.5 and the PEG is 2.02.

WPP Group plc (WPPGY) is one of the largest advertising and communications services companies in the world. The P/E is 21, the PEG is 1.18, and the yield is 1.5%.

Author does not own any of the above.

By Fred Fuld for Stockerblog.com.

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