Pearson (NYSE:PSO – Get Free Report) is one of 25 public companies in the “MEDIA CONGLOM” industry, but how does it contrast to its competitors? We will compare Pearson to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Risk and Volatility
Pearson has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Pearson’s competitors have a beta of 3.78, meaning that their average share price is 278% more volatile than the S&P 500.
Profitability
This table compares Pearson and its competitors’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Pearson | N/A | N/A | N/A |
Pearson Competitors | -0.69% | -71.10% | 1.71% |
Dividends
Valuation & Earnings
This table compares Pearson and its competitors top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Pearson | $4.54 billion | $554.61 million | 15.38 |
Pearson Competitors | $9.88 billion | -$287.07 million | -33.36 |
Pearson’s competitors have higher revenue, but lower earnings than Pearson. Pearson is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
2.1% of Pearson shares are owned by institutional investors. Comparatively, 41.3% of shares of all “MEDIA CONGLOM” companies are owned by institutional investors. 0.1% of Pearson shares are owned by company insiders. Comparatively, 14.6% of shares of all “MEDIA CONGLOM” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Pearson and its competitors, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Pearson | 0 | 0 | 1 | 1 | 3.50 |
Pearson Competitors | 269 | 884 | 1580 | 39 | 2.50 |
Pearson presently has a consensus target price of $18.00, suggesting a potential upside of 24.48%. As a group, “MEDIA CONGLOM” companies have a potential upside of 11.69%. Given Pearson’s stronger consensus rating and higher possible upside, analysts clearly believe Pearson is more favorable than its competitors.
Summary
Pearson beats its competitors on 9 of the 15 factors compared.
About Pearson
Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.
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