WallStSmart

Stagwell Inc (STGW)vsWPP PLC ADR (WPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WPP PLC ADR generates 346% more annual revenue ($13.55B vs $3.04B). STGW leads profitability with a 0.5% profit margin vs -1.6%. STGW appears more attractively valued with a PEG of 0.41. STGW earns a higher WallStSmart Score of 57/100 (C).

STGW

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 4.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.88

WPP

Avoid

32

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 5.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for STGW.

WPPUndervalued (+68.4%)

Margin of Safety

+68.4%

Fair Value

$58.02

Current Price

$20.60

$37.42 discount

UndervaluedFair: $58.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STGW2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

EPS GrowthGrowth
65.1%10/10

Earnings expanding 65.1% YoY

WPP1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

STGW4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
145.0x2/10

Premium valuation, high expectations priced in

WPP4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.232/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.3%2/10

Revenue declined 8.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : STGW

The strongest argument for STGW centers on PEG Ratio, EPS Growth. Revenue growth of 11.2% demonstrates continued momentum. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bull Case : WPP

The strongest argument for WPP centers on Free Cash Flow.

Bear Case : STGW

The primary concerns for STGW are Return on Equity, Profit Margin, Operating Margin. A P/E of 145.0x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.

Bear Case : WPP

The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.69 is elevated, increasing financial risk.

Key Dynamics to Monitor

STGW profiles as a value stock while WPP is a turnaround play — different risk/reward profiles.

STGW carries more volatility with a beta of 1.22 — expect wider price swings.

STGW is growing revenue faster at 11.2% — sustainability is the question.

WPP generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

STGW scores higher overall (57/100 vs 32/100) and 11.2% revenue growth. WPP offers better value entry with a 68.4% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Stagwell Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Stagwell Inc. (STGW) is a leading digital marketing and communications agency, founded in 2015, renowned for its innovative, performance-driven strategies across advertising, public relations, and digital media platforms. Leveraging advanced technology and data analytics, Stagwell delivers measurable results for clients, solidifying its status as a front-runner in the evolving marketing landscape. With a strategic focus on targeted acquisitions, the company enhances its competitive advantage and growth potential, making it an attractive investment prospect for institutional investors seeking exposure to the expanding global digital economy.

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WPP PLC ADR

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.

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