Home / Agencies / These are the world’s top performing advertising stocks – and you probably haven’t heard of any of them apart from Omnicom

These are the world’s top performing advertising stocks – and you probably haven’t heard of any of them apart from Omnicom

Partly because three of them are Chinese (apart from readers in China of course) and partly because they are are mostly niche internet businesses; the contemporary equivalent of direct marketing on the internet.

Report by China Analyst.

Below are the top 10 Advertising stocks with highest Return on Equity (ROE) ratio for the last 12 months, UPDATED TODAY before 4:30 AM ET. ROE shows a company’s efficiency in making profits from shareholders’ equity. It is equal to net profits divided by shareholders’ equity. Three Chinese companies (CCME, CNET, CNYD) are on the list.

Valassis Communications, Inc. (NYSE:VCI) has the 1st highest Return on Equity in this segment of the market. Its ROE was 141.50% for the last 12 months. Its net profit margin was 16.67% for the same period.

Arbitron Inc. (NYSE:ARB) has the 2nd highest Return on Equity in this segment of the market. Its ROE was 106.15% for the last 12 months. Its net profit margin was 10.77% for the same period.

China MediaExpress Holdings Inc (NASDAQ:CCME) has the 3rd highest Return on Equity in this segment of the market. Its ROE was 69.78% for the last 12 months. Its net profit margin was 49.26% for the same period.

ChinaNet Online Holdings Inc (NDA) (NASDAQ:CNET) has the 4th highest Return on Equity in this segment of the market. Its ROE was 56.64% for the last 12 months. Its net profit margin was 30.17% for the same period.

SPAR Group, Inc. (NASDAQ:SGRP) has the 5th highest Return on Equity in this segment of the market. Its ROE was 29.14% for the last 12 months. Its net profit margin was 1.99% for the same period.

China Yida Holding, Co. (NASDAQ:CNYD) has the 6th highest Return on Equity in this segment of the market. Its ROE was 26.08% for the last 12 months. Its net profit margin was 45.56% for the same period.

Insignia Systems, Inc. (NASDAQ:ISIG) has the 7th highest Return on Equity in this segment of the market. Its ROE was 20.63% for the last 12 months. Its net profit margin was 7.77% for the same period.

Omnicom Group Inc. (NYSE:OMC) has the 8th highest Return on Equity in this segment of the market. Its ROE was 19.69% for the last 12 months. Its net profit margin was 7.11% for the same period.

ValueClick, Inc. (NASDAQ:VCLK) has the 9th highest Return on Equity in this segment of the market. Its ROE was 17.55% for the last 12 months. Its net profit margin was 18.65% for the same period.

interCLICK Inc (NASDAQ:ICLK) has the 10th highest Return on Equity in this segment of the market. Its ROE was 16.09% for the last 12 months. Its net profit margin was 4.39% for the same period.

The key, of course, is ‘net profits divided by shareholders’ equity.’ The companies that do well are those that haven’t issued loads of shares, to make acquisitions for example.

Unlike its big marcoms rivals Omnicom has not, by and large, expanded via big share-funded acquisitions.

Which means that it is in a very strong position to buy companies now, with cash or indeed shares, should it so choose.

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