M&C Saatchi (SAA) Competitors

M&C Saatchi (LON:SAA) and Next Fifteen Communications Group (LON:NFC) are both small-cap advertising agencies industry companies, but which is the superior investment? We will compare the two businesses based on the strength of their media sentiment, valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Does the media prefer SAA or NFC?

In the previous week, M&C Saatchi had 1 more articles in the media than Next Fifteen Communications Group. MarketBeat recorded 1 mentions for M&C Saatchi and 0 mentions for Next Fifteen Communications Group. M&C Saatchi's average media sentiment score of 0.69 beat Next Fifteen Communications Group's score of 0.00 indicating that M&C Saatchi is being referred to more favorably in the media.

Company	Overall Sentiment
M&C Saatchi	Positive
Next Fifteen Communications Group	Neutral

Do insiders & institutionals hold more shares of SAA or NFC?

66.5% of M&C Saatchi shares are held by institutional investors. Comparatively, 86.3% of Next Fifteen Communications Group shares are held by institutional investors. 27.5% of M&C Saatchi shares are held by company insiders. Comparatively, 8.9% of Next Fifteen Communications Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Is SAA or NFC more profitable?

M&C Saatchi has a net margin of 2.43% compared to Next Fifteen Communications Group's net margin of -12.73%. M&C Saatchi's return on equity of 34.45% beat Next Fifteen Communications Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
M&C Saatchi	2.43%	34.45%	10.04%
Next Fifteen Communications Group	-12.73%	-66.09%	7.65%

Which has more risk & volatility, SAA or NFC?

M&C Saatchi has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Next Fifteen Communications Group has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Is SAA or NFC a better dividend stock?

M&C Saatchi pays an annual dividend of GBX 3 per share and has a dividend yield of 1.6%. Next Fifteen Communications Group pays an annual dividend of GBX 13 per share. M&C Saatchi pays out 33.8% of its earnings in the form of a dividend. Next Fifteen Communications Group pays out -1,585.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Which has stronger earnings and valuation, SAA or NFC?

M&C Saatchi has higher earnings, but lower revenue than Next Fifteen Communications Group. Next Fifteen Communications Group is trading at a lower price-to-earnings ratio than M&C Saatchi, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&C Saatchi	£456.33M	0.50	£11.09M	£8.88	20.89
Next Fifteen Communications Group	£602.53M	0.00	-£76.69M	-£0.82	N/A

Summary

M&C Saatchi beats Next Fifteen Communications Group on 10 of the 14 factors compared between the two stocks.