Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Advertising & Marketing industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Advertising & Marketing Stock News

Before choosing which top Advertising & Marketing stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The outlook for the advertising subindustry is neutral. There are growth prospects, supported by exposure to emerging market consumers and enhanced digital capabilities on new advertising technologies for data and analytics. However, global economic outlook has been significantly hampered by the global pandemic, precipitating a U.S. (and global) economic recession and some likely pullback of discretionary spending by several marketers. This provides potential for a revenue shortfall in the U.S. and some international markets. With growing share of advertising spending shifting toward the internet and other digital platforms. Despite the decline in traditional ratings, television advertising will likely continue to garner the bulk of the overall spending, thanks in part to marketers looking for mass audiences. In 2020, the S&P Advertising subindustry Index fell 11.5% versus a 15.8% increase for the S&P Composite 1500 Index.

Why Focus on Undervalued Advertising & Marketing Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Advertising & Marketing Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Advertising & Marketing industry for Friday, January 06, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Advertising & Marketing industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Advantage Solutions Inc’s Value Grade

Value Grade:

Advantage Solutions Inc. is a provider of outsourced solutions to consumer goods companies and retailers. Its segments include Sales and Marketing. Sales segment provides its clients with a range of outsourced solutions to enhance sales in the traditional retail, foodservice and e-commerce channels. Its primary sales services include Brand-Centric Services, Retailer-Centric Services. Brand-centric services include headquarter relationship management, analytics, insights and intelligence, administration and brand-centric merchandising. It manages a range of media, merchandising and display platforms for retailers, including multi- manufacturer circular programs; an in-store display platform for perishable brands with cooler units in high- traffic locations; and a network of advertisements on pedestals at the entrances and exits of major retailers. Marketing Segment helps brands and retailers reach consumers through two platforms brand-centric services and retailer-centric services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Advantage Solutions Inc has a Value Score of 90, which is considered to be undervalued.

When you look at Advantage Solutions Inc’s price-to-sales ratio at 0.17 compared to the industry median at 0.63, this company has a lower price relative to revenue compared to its peers. This could make Advantage Solutions Inc’s stock more attractive for value investors.

Advantage Solutions Inc’s price-earnings ratio is 9.98 compared to the industry median at 13.65. This means it has a lower share price relative to earnings compared to its peers. This could make Advantage Solutions Inc more attractive for value investors.

Now, let’s assess Advantage Solutions Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.0, when compared to the industry median of 7.0, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Advantage Solutions Inc’s shareholder yield is higher than its industry median ratio of (1.82%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Advantage Solutions Inc’s price-to-book ratio is lower than its industry median ratio of 1.53. This could make Advantage Solutions Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Advantage Solutions Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Advantage Solutions Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 9.27. This could make Advantage Solutions Inc less attractive because the higher P/FCF ratio indicates that Advantage Solutions Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Cardlytics Inc’s Value Grade

Value Grade:

Cardlytics, Inc. is a digital advertising platform. The Company operates advertising platform, namely the Cardlytics platform within its own and its partners' digital channels, which include online, mobile applications, email, and various real-time notifications. It also operates a customer data platform, namely the Bridg platform, which utilizes point-of-sale (POS) data, including product-level purchase data, to enable marketers, in a privacy-protective manner, to perform analytics and targeted loyalty marketing and also enable marketers to measure the impact of their marketing. Through the Cardlytics platform, marketers can deliver advertising content to customers in the form of an opportunity to earn rewards, which are funded with a portion of the fees, which it collect from marketers. With the Cardlytics platform, it enables marketers to reach potential customers across its network of financial institutions (FI) partners through their digital banking accounts.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cardlytics Inc has a Value Score of 82, which is considered to be undervalued.

Cardlytics Inc’s price-to-book ratio is higher than its peers. This could make Cardlytics Inc less attractive for value investors when compared to the industry median at 1.53.

You can read more about Cardlytics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Fluent Inc’s Value Grade

Value Grade:

Fluent, Inc. is engaged in data-driven digital marketing services. The Company conducts customer acquisition services by operating digital marketing campaigns, through which it connects its advertiser clients with consumers they are seeking to reach. Its segments include Fluent and All Other. It delivers data and performance-based marketing executions to its clients, which consists of about 500 consumer brands, direct marketers, and agencies across a range of industries, including media and entertainment, financial products and services, health and wellness, retail and consumer and staffing and recruitment. It primarily provides performance marketing solutions to its clients based on their desired outcomes, or specific actions in their marketing funnels, including the submission of a registration form, an application installation, or a completed transaction. Its owned and operated media properties include Flash Rewards, The Smart Wallet and Find Dream Job to meet its clients needs.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Fluent Inc has a Value Score of 92, which is considered to be undervalued.

Fluent Inc’s price-to-book ratio is higher than its peers. This could make Fluent Inc less attractive for value investors when compared to the industry median at 1.53.

You can read more about Fluent Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Glory Star New Media Group Holdings Ltd’s Value Grade

Value Grade:

Glory Star New Media Group Holdings Limited, formerly TKK Symphony Acquisition Corporation, is Hong Kong based company which is mainly engaged in the advertising, digital media and the entertainment business. The Company mainly provides advertising and content production services, and operates a mobile and online advertising, digital media, and entertainment business.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Glory Star New Media Group Holdings Ltd has a Value Score of 88, which is considered to be undervalued.

Glory Star New Media Group Holdings Ltd’s price-earnings ratio is 3.4 compared to the industry median at 13.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Glory Star New Media Group Holdings Ltd more attractive for value investors.

Glory Star New Media Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make Glory Star New Media Group Holdings Ltd less attractive for value investors when compared to the industry median at 1.53.

You can read more about Glory Star New Media Group Holdings Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Kubient Inc’s Value Grade

Value Grade:

Kubient, Inc. is a technology company. The Company provides Audience Marketplace, a cloud-based software platform for real-time trading of digital, programmatic advertising. Its platform enables advertisers and publishers to transact directly with each other on an open, end-to-end real-time bidding platform for programmatic digital advertising. Its advertising inventory on its platform is available in any channel: desktop, mobile, digital out-of-home, and connected devices; and in any format: video, display, audio, and native. Its fully integrated audience platform provides a fraud-minimized, transparent, independent advertising marketplace that facilitates intelligent decision-making, and automated transaction execution for the programmatic advertising industry. Its platform offers a machine learning-powered fraud prevention solution and an audience management platform which provides omni-channel access into all advertising channels, inventory and advertisement formats.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Kubient Inc has a Value Score of 80, which is considered to be undervalued.

Kubient Inc’s price-to-book ratio is higher than its peers. This could make Kubient Inc less attractive for value investors when compared to the industry median at 1.53.

You can read more about Kubient Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Matthews International Corp’s Value Grade

Value Grade:

Matthews International Corporation is a global provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Matthews International Corp has a Value Score of 62, which is considered to be undervalued.

Matthews International Corp’s price-to-book ratio is lower than its peers. This could make Matthews International Corp more attractive for value investors when compared to the industry median at 1.53.

You can read more about Matthews International Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Thryv Holdings Inc’s Value Grade

Value Grade:

Thryv Holdings, Inc. is a provider of software as a service (SaaS) end-to-end customer tools and digital marketing solutions to small-to-medium sized businesses (SMBs). The Company’s segments include Marketing Services, SaaS, and Thryv International. The Marking Services segment consists of the Company's print and digital solutions businesses. The SaaS segment consists of Company's flagship SMB end-to-end customer experience platform. The Thryv International segment consists of the Thryv Australia business, which is a provider of marketing solutions serving SMBs. Its marketing services include print yellow pages, Internet yellow pages, search engine marketing, and other digital media solutions. Its SaaS segment includes Thryv, Hub By Thryv, Thryv Leads and add-ons, and ThryvPay. Its Thryv platform is its flagship SMB end-to-end customer platform, which includes customer relationship management, omnichannel email and text marketing automation, and scheduling and appointment management.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Thryv Holdings Inc has a Value Score of 84, which is considered to be undervalued.

Thryv Holdings Inc’s price-earnings ratio is 6.4 compared to the industry median at 13.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Thryv Holdings Inc more attractive for value investors.

Thryv Holdings Inc’s price-to-book ratio is lower than its peers. This could make Thryv Holdings Inc more attractive for value investors when compared to the industry median at 1.53.

You can read more about Thryv Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Advertising & Marketing Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Advertising & Marketing stocks as well as other industrys.

Choosing Which of the 7 Best Advertising & Marketing Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Advantage Solutions Inc stock has a Value Grade of A.
• Cardlytics Inc stock has a Value Grade of A.
• Fluent Inc stock has a Value Grade of A.
• Glory Star New Media Group Holdings Ltd stock has a Value Grade of A.
• Kubient Inc stock has a Value Grade of B.
• Matthews International Corp stock has a Value Grade of B.
• Thryv Holdings Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Advertising & Marketing industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Advertising & Marketing Stocks

Want to learn more about Advertising & Marketing stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Advertising & Marketing Stocks for Friday, January 06
• 4 Undervalued Advertising & Marketing Stocks for Thursday, January 05
• 6 Undervalued Advertising & Marketing Stocks for Wednesday, January 04
• 5 Undervalued Advertising & Marketing Stocks for Tuesday, January, 03

AAII Disclaimer

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