PSON vs. INF, ERM, FUTR, DMGT, BMY, DODS, RCH, LBG, SNWS, and CNCT
Should you be buying Pearson stock or one of its competitors? The main competitors of Pearson include Informa (INF), Euromoney Institutional Investor (ERM), Future (FUTR), Daily Mail and General Trust (DMGT), Bloomsbury Publishing (BMY), Dods Group (DODS), Reach (RCH), LBG Media (LBG), Smiths News (SNWS), and Smiths News Plc (CNCT.L) (CNCT). These companies are all part of the "publishing" industry.
Pearson (LON:PSON) and Informa (LON:INF) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, risk, valuation, dividends, earnings, profitability, media sentiment and institutional ownership.
Pearson has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Informa has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Pearson received 14 more outperform votes than Informa when rated by MarketBeat users. However, 65.81% of users gave Informa an outperform vote while only 54.50% of users gave Pearson an outperform vote.
Informa has a net margin of 13.14% compared to Pearson's net margin of 10.29%. Pearson's return on equity of 9.04% beat Informa's return on equity.
In the previous week, Informa had 11 more articles in the media than Pearson. MarketBeat recorded 11 mentions for Informa and 0 mentions for Pearson. Informa's average media sentiment score of 0.08 beat Pearson's score of 0.00 indicating that Informa is being referred to more favorably in the news media.
Pearson pays an annual dividend of GBX 23 per share and has a dividend yield of 2.4%. Informa pays an annual dividend of GBX 18 per share and has a dividend yield of 2.1%. Pearson pays out 4,339.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Informa pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pearson is clearly the better dividend stock, given its higher yield and lower payout ratio.
Pearson presently has a consensus price target of GBX 1,092.50, indicating a potential upside of 15.24%. Informa has a consensus price target of GBX 865.33, indicating a potential upside of 2.07%. Given Pearson's higher possible upside, analysts clearly believe Pearson is more favorable than Informa.
Informa has lower revenue, but higher earnings than Pearson. Pearson is trading at a lower price-to-earnings ratio than Informa, indicating that it is currently the more affordable of the two stocks.
80.4% of Pearson shares are owned by institutional investors. Comparatively, 79.1% of Informa shares are owned by institutional investors. 0.3% of Pearson shares are owned by insiders. Comparatively, 0.4% of Informa shares are owned by 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.
Summary
Informa beats Pearson on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PSON and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of LON and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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