Generation Next Franchise Brands (OTCMKTS: VEND) and WPP PLC (NASDAQ:WPPGY) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
WPP PLC pays an annual dividend of $4.89 per share and has a dividend yield of 5.3%. Generation Next Franchise Brands does not pay a dividend.
Institutional & Insider Ownership
3.8% of WPP PLC shares are owned by institutional investors. 62.6% of Generation Next Franchise Brands shares are owned by company insiders. Comparatively, 1.0% of WPP PLC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Generation Next Franchise Brands and WPP PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Generation Next Franchise Brands||N/A||N/A||N/A|
Earnings & Valuation
This table compares Generation Next Franchise Brands and WPP PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Generation Next Franchise Brands||$5.06 million||6.48||-$7.62 million||N/A||N/A|
|WPP PLC||$19.72 billion||1.19||$3.55 billion||N/A||N/A|
WPP PLC has higher revenue and earnings than Generation Next Franchise Brands.
This is a summary of current ratings for Generation Next Franchise Brands and WPP PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Generation Next Franchise Brands||0||0||1||0||3.00|
Generation Next Franchise Brands currently has a consensus target price of $1.50, suggesting a potential upside of 44.23%. WPP PLC has a consensus target price of $130.00, suggesting a potential upside of 40.74%. Given Generation Next Franchise Brands’ stronger consensus rating and higher probable upside, research analysts clearly believe Generation Next Franchise Brands is more favorable than WPP PLC.
Risk and Volatility
Generation Next Franchise Brands has a beta of -8.09, meaning that its share price is 909% less volatile than the S&P 500. Comparatively, WPP PLC has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
WPP PLC beats Generation Next Franchise Brands on 6 of the 10 factors compared between the two stocks.
About Generation Next Franchise Brands
Generation NEXT Franchise Brands, Inc. formerly Fresh Healthy Vending International, Inc., is a franchise development company and operator of Company-owned vending machines, micro markets and frozen yogurt robots. The Company provides a portfolio of fresh, organic and all-natural snacks and drinks. The micro market provides fresh full meal options, such as salads, sandwiches and wraps. The micro market is designed for implementation in corporate environments, hotel lobbies, auto dealerships and other retail environments. The Company is focused on setting up national distribution partners to carry the consumable products required for the frozen yogurt robots. It outsources non-core functions to third-party vendors. Its services include machine manufacturing, transport, location set-up, maintenance, inventory, food management and ordering, payment processing and cash management. As of June 30, 2016, the Company and its franchisees operated over 3,000 vending machines and micro markets.
About WPP PLC
WPP PLC is a parent company that, through its subsidiaries, is engaged in the provision of communications and marketing services worldwide. The Company has four segments: Advertising and Media Investment Management; Consumer Insight (formerly Information, Insight & Consultancy); Public Relations & Public Affairs, and Branding & Identity, Healthcare and Specialist Communications, which includes WPP Digital and direct, digital, promotional and relationship marketing. It comprises companies in disciplines, such as advertising, media investment management, consumer insight, public relations and public affairs, branding and identity, healthcare communications, specialist communications, and direct, digital, promotion and relationship marketing. As of December 31, 2009, WPP PLC operated through 2,400 offices in 107 countries. In February 2009, the Company acquired Red Dot Square Solutions. In May 2010, the Company acquired Midia Digital and I-Cherry, two of the digital agencies in Brazil.
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