Head-To-Head Analysis: Pearson (NYSE:PSO) & Cineverse (NASDAQ:CNVS)

Cineverse (NASDAQ:CNVS) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Cineverse and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cineverse	4.61%	12.19%	5.22%
Pearson	N/A	N/A	N/A

Earnings and Valuation

This table compares Cineverse and Pearson”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cineverse	$78.18 million	1.40	$3.60 million	$0.09	71.00
Pearson	$4.54 billion	2.06	$554.61 million	$0.94	15.07

Pearson has higher revenue and earnings than Cineverse. Pearson is trading at a lower price-to-earnings ratio than Cineverse, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cineverse and Pearson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cineverse	0	0	2	0	3.00
Pearson	0	0	1	2	3.67

Cineverse presently has a consensus target price of $7.25, indicating a potential upside of 13.46%. Pearson has a consensus target price of $18.00, indicating a potential upside of 27.07%. Given Pearson’s stronger consensus rating and higher possible upside, analysts clearly believe Pearson is more favorable than Cineverse.

Risk & Volatility

Cineverse has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

8.2% of Cineverse shares are held by institutional investors. Comparatively, 2.1% of Pearson shares are held by institutional investors. 14.7% of Cineverse shares are held by company insiders. Comparatively, 0.1% of Pearson shares are held 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.

Summary

Cineverse beats Pearson on 8 of the 15 factors compared between the two stocks.

About Cineverse

Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.

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.