WallStSmart

Educational Development Corporation (EDUC)vsPearson PLC ADR (PSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 15511% more annual revenue ($3.58B vs $22.91M). EDUC leads profitability with a 10.2% profit margin vs 9.4%. PSO appears more attractively valued with a PEG of 2.00. EDUC earns a higher WallStSmart Score of 53/100 (C-).

EDUC

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 3.5Value: 8.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.22

PSO

Hold

41

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 4.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUCUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$2.94

Current Price

$1.39

$1.55 discount

UndervaluedFair: $2.94Overvalued
PSOSignificantly Overvalued (-21.1%)

Margin of Safety

-21.1%

Fair Value

$10.03

Current Price

$15.56

$5.53 premium

UndervaluedFair: $10.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDUC5 strengths · Avg: 9.8/10
P/E RatioValuation
5.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
218779.0%10/10

Earnings expanding 218779.0% YoY

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

PSO2 strengths · Avg: 8.5/10
Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

EDUC4 concerns · Avg: 3.0/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Market CapQuality
$11.83M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Revenue GrowthGrowth
-37.0%2/10

Revenue declined 37.0%

PSO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : EDUC

The strongest argument for EDUC centers on P/E Ratio, Price/Book, EPS Growth.

Bull Case : PSO

The strongest argument for PSO centers on Return on Equity, Price/Book.

Bear Case : EDUC

The primary concerns for EDUC are PEG Ratio, Market Cap, Return on Equity.

Bear Case : PSO

The primary concerns for PSO are PEG Ratio, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

EDUC profiles as a declining stock while PSO is a value play — different risk/reward profiles.

EDUC carries more volatility with a beta of 1.05 — expect wider price swings.

PSO is growing revenue faster at 3.2% — sustainability is the question.

PSO generates stronger free cash flow (461M), providing more financial flexibility.

Bottom Line

EDUC scores higher overall (53/100 vs 41/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Educational Development Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Educational Development Corporation, a publishing company, is a commercial co-publisher of educational children's books in the United States. The company is headquartered in Tulsa, Oklahoma.

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Pearson PLC ADR

COMMUNICATION SERVICES · PUBLISHING · USA

Pearson plc provides educational materials and learning technologies. The company is headquartered in London, the United Kingdom.

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