Pearson, PLC (PSO) vs Scholastic Corporation (SCHL)

Pearson, PLC and Scholastic Corporation are both Publishing companies. Pearson, PLC is the larger, with a market value of $9.6B against $595.1M — 16.1× the size. Scholastic Corporation trades at the lower P/E: 13.2× against 16.6×. Pearson, PLC grew revenue faster over the last twelve months: 1.35% against −2.68%. Pearson, PLC has the higher net margin (7.58% vs 3.58%) and the lower return on invested capital (0.00% vs 1.38%). Both pay a dividend; Pearson, PLC yields more (2.43% vs 2.11%). Across the 20 metrics below, Scholastic Corporation leads on 13 and Pearson, PLC on 7.

Valuation

Metric PSO SCHL Publishing median
P/E 16.59 13.20 13.20
P/S n/m 0.48 0.54
P/B n/m 1.02 4.05
Price to free cash flow n/m 306.68 12.41
EV/EBITDA 0.83 5.98 9.09
EV/Sales 0.20 0.46 1.61
Earnings yield 6.03% 7.57% 6.03%
Free cash flow yield 0.00% 0.33% 6.02%

Profitability

Metric PSO SCHL Publishing median
Gross margin 48.22% 56.39% 58.08%
Operating margin 0.00% 0.96% 4.37%
Net margin 7.58% 3.58% 7.58%
Free cash flow margin 0.00% 0.16% 3.40%
Return on equity 0.00% 6.68% 6.68%
Return on assets 0.00% 3.08% 3.08%
Return on invested capital 0.00% 1.38% 3.31%

Growth

Metric PSO SCHL Publishing median
Revenue growth (TTM) 1.35% (2.68%) (1.48%)
EPS growth (last fiscal year) (17.28%) 3,442.86% —
Revenue growth, 5-year CAGR 1.58% 4.00% (2.38%)
Net income growth, 5-year CAGR 2.11% 0.00% 0.00%

Health

Metric PSO SCHL Publishing median
Debt to equity 0.52 0.10 1.62
Current ratio 2.00 1.23 1.17
Net debt to EBITDA 1.61 (0.49) 1.44

Dividend

Metric PSO SCHL Publishing median
Dividend yield 2.43% 2.11% 3.09%
Payout ratio 0.54 0.54 0.36

Size

Metric PSO SCHL Publishing median
Market cap 9.60b 595.13m 946.98m

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