WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 17295% more annual revenue ($3.58B vs $20.56M). EDUC leads profitability with a 9.8% profit margin vs 9.4%. EDUC appears more attractively valued with a PEG of 2.01. EDUC earns a higher WallStSmart Score of 51/100 (C-).

EDUC

Buy

51

out of 100

Grade: C-

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

PSO

Hold

40

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 4.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUCUndervalued (+46.0%)

Margin of Safety

+46.0%

Fair Value

$2.61

Current Price

$1.39

$1.22 discount

UndervaluedFair: $2.61Overvalued
PSOSignificantly Overvalued (-19.9%)

Margin of Safety

-19.9%

Fair Value

$10.13

Current Price

$17.43

$7.30 premium

UndervaluedFair: $10.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDUC5 strengths · Avg: 9.8/10
P/E RatioValuation
6.0x10/10

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
2.3x8/10

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
$12.36M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Revenue GrowthGrowth
-33.1%2/10

Revenue declined 33.1%

PSO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Altman Z-ScoreHealth
1.974/10

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 carries more volatility with a beta of 1.03 — 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.

Monitor PUBLISHING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EDUC scores higher overall (51/100 vs 40/100). 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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