Pearson, PLC (PSO) vs John Wiley & Sons, Inc. (WLY)

Pearson, PLC and John Wiley & Sons, Inc. are both Publishing companies. Pearson, PLC is the larger, with a market value of $9.6B against $2.5B — 3.9× the size. John Wiley & Sons, Inc. trades at the lower P/E: 12.4× against 16.6×. Pearson, PLC grew revenue faster over the last twelve months: 1.35% against −0.27%. John Wiley & Sons, Inc. has the higher net margin (11.9% vs 7.58%) and the higher return on invested capital (7.85% vs 0.00%). Both pay a dividend; John Wiley & Sons, Inc. yields more (4.15% vs 2.43%). Across the 20 metrics below, John Wiley & Sons, Inc. leads on 14 and Pearson, PLC on 6.

Valuation

Metric PSO WLY Publishing median
P/E 16.59 12.38 13.20
P/S n/m 1.45 0.54
P/B n/m 3.03 4.05
Price to free cash flow n/m 7.43 12.41
EV/EBITDA 0.83 9.09 9.09
EV/Sales 0.20 2.16 1.61
Earnings yield 6.03% 8.08% 6.03%
Free cash flow yield 0.00% 13.45% 6.02%

Profitability

Metric PSO WLY Publishing median
Gross margin 48.22% 74.60% 58.08%
Operating margin 0.00% 14.94% 4.37%
Net margin 7.58% 11.90% 7.58%
Free cash flow margin 0.00% 19.48% 3.40%
Return on equity 0.00% 25.91% 6.68%
Return on assets 0.00% 7.01% 3.08%
Return on invested capital 0.00% 7.85% 3.31%

Growth

Metric PSO WLY Publishing median
Revenue growth (TTM) 1.35% (0.27%) (1.48%)
EPS growth (last fiscal year) (17.28%) 171.90% —
Revenue growth, 5-year CAGR 1.58% (2.89%) (2.38%)
Net income growth, 5-year CAGR 2.11% 8.37% 0.00%

Health

Metric PSO WLY Publishing median
Debt to equity 0.52 1.62 1.62
Current ratio 2.00 0.64 1.17
Net debt to EBITDA 1.61 1.44 1.44

Dividend

Metric PSO WLY Publishing median
Dividend yield 2.43% 4.15% 3.09%
Payout ratio 0.54 0.80 0.36

Size

Metric PSO WLY Publishing median
Market cap 9.60b 2.46b 946.98m

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