WallStSmart

Alphabet Inc Class C (GOOG)vsPearson PLC ADR (PSO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 12169% more annual revenue ($445.87B vs $3.63B). GOOG leads profitability with a 54.8% profit margin vs 8.8%. GOOG appears more attractively valued with a PEG of 1.20. GOOG earns a higher WallStSmart Score of 75/100 (B).

GOOG

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 8.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.92

PSO

Hold

42

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

GOOGUndervalued (+33.7%)

Margin of Safety

+33.7%

Fair Value

$478.28

Current Price

$282.32

$195.96 discount

UndervaluedFair: $478.28Overvalued
PSOSignificantly Overvalued (-16.9%)

Margin of Safety

-16.9%

Fair Value

$10.39

Current Price

$17.32

$6.93 premium

UndervaluedFair: $10.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.12T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.1%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
54.8%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

EPS GrowthGrowth
294.0%10/10

Earnings expanding 294.0% YoY

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

PSO2 strengths · Avg: 8.5/10
Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

GOOG1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-5.86B2/10

Negative free cash flow — burning cash

PSO4 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
27.2x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 54.8% and operating margin at 34.0%. Revenue growth of 24.2% demonstrates continued momentum.

Bull Case : PSO

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

Bear Case : GOOG

The primary concerns for GOOG are Free Cash Flow.

Bear Case : PSO

The primary concerns for PSO are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

GOOG profiles as a growth stock while PSO is a value play — different risk/reward profiles.

GOOG carries more volatility with a beta of 1.21 — expect wider price swings.

GOOG is growing revenue faster at 24.2% — sustainability is the question.

PSO generates stronger free cash flow (316M), providing more financial flexibility.

Bottom Line

GOOG scores higher overall (75/100 vs 42/100), backed by strong 54.8% margins and 24.2% revenue growth. Both earn "Strong 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.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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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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