Pearson, PLC (PSO) vs USA TODAY Co., Inc. (TDAY)

Pearson, PLC and USA TODAY Co., Inc. are both Publishing companies. Pearson, PLC is the larger, with a market value of $9.6B against $947.0M — 10.1× the size. USA TODAY Co., Inc. has negative trailing earnings, so its P/E is not meaningful; Pearson, PLC trades at 16.6×. Pearson, PLC grew revenue faster over the last twelve months: 1.35% against −6.67%. Pearson, PLC has the higher net margin (7.58% vs −1.81%) and the lower return on invested capital (0.00% vs 6.43%). Across the 18 metrics below, Pearson, PLC leads on 13 and USA TODAY Co., Inc. on 5.

Valuation

Metric PSO TDAY Publishing median
P/E 16.59 n/m 13.20
P/S n/m 0.42 0.54
P/B n/m 6.15 4.05
Price to free cash flow n/m 12.41 12.41
EV/EBITDA 0.83 7.30 9.09
EV/Sales 0.20 0.81 1.61
Earnings yield 6.03% (4.36%) 6.03%
Free cash flow yield 0.00% 8.06% 6.02%

Profitability

Metric PSO TDAY Publishing median
Gross margin 48.22% 39.47% 58.08%
Operating margin 0.00% 4.69% 4.37%
Net margin 7.58% (1.81%) 7.58%
Free cash flow margin 0.00% 3.40% 3.40%
Return on equity 0.00% (20.67%) 6.68%
Return on assets 0.00% (2.12%) 3.08%
Return on invested capital 0.00% 6.43% 3.31%

Growth

Metric PSO TDAY Publishing median
Revenue growth (TTM) 1.35% (6.67%) (1.48%)
EPS growth (last fiscal year) (17.28%) 105.56% —
Revenue growth, 5-year CAGR 1.58% (7.53%) (2.38%)
Net income growth, 5-year CAGR 2.11% 0.00% 0.00%

Health

Metric PSO TDAY Publishing median
Debt to equity 0.52 6.20 1.62
Current ratio 2.00 0.81 1.17
Net debt to EBITDA 1.61 3.68 1.44

Dividend

Metric PSO TDAY Publishing median
Dividend yield 2.43% — 3.09%
Payout ratio 0.54 0.00 0.36

Size

Metric PSO TDAY Publishing median
Market cap 9.60b 946.98m 946.98m

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