OMC - The Big Five Ad Agencies Are Still Unattractive
Omnicom (OMC) and Interpublic Group(IPG) both appear as top stocks in Joel Greenblatt’s “Magic Formula” screener, ranked 99th and 118th (out of 574 long positions in the ~100% net long fund as of March 31, 2018). If the fund included international stocks, we’d guess that WPP Group (WPP), Publicis (PUBGY), and Dentsu (DNTUY) would probably appear as well, since they are similar businesses that trade at low valuations. These large advertising agencies previously made good investments as the industry consolidated around the five