WallStSmart

Pearson PLC ADR (PSO)vsUSA TODAY Co., Inc. (TDAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 63% more annual revenue ($3.63B vs $2.23B). PSO leads profitability with a 8.8% profit margin vs -1.8%. TDAY appears more attractively valued with a PEG of 0.94. PSO earns a higher WallStSmart Score of 41/100 (D).

PSO

Hold

41

out of 100

Grade: D

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

TDAY

Hold

37

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 7.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSOSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$10.33

Current Price

$15.69

$5.36 premium

UndervaluedFair: $10.33Overvalued
TDAYUndervalued (+52.7%)

Margin of Safety

+52.7%

Fair Value

$12.83

Current Price

$6.36

$6.47 discount

UndervaluedFair: $12.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Every $100 of equity generates 21 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

TDAY1 strengths · Avg: 8.0/10
PEG RatioValuation
0.948/10

Growing faster than its price suggests

Areas to Watch

PSO4 concerns · Avg: 3.5/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

EPS GrowthGrowth
-2.9%2/10

Earnings declined 2.9%

TDAY4 concerns · Avg: 2.5/10
Market CapQuality
$929.36M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Return on EquityProfitability
-26.2%2/10

ROE of -26.2% — below average capital efficiency

Revenue GrowthGrowth
-8.3%2/10

Revenue declined 8.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : PSO

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

Bull Case : TDAY

The strongest argument for TDAY centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : PSO

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

Bear Case : TDAY

The primary concerns for TDAY are Market Cap, Operating Margin, Return on Equity. Debt-to-equity of 7.23 is elevated, increasing financial risk.

Key Dynamics to Monitor

PSO profiles as a value stock while TDAY is a turnaround play — different risk/reward profiles.

TDAY carries more volatility with a beta of 1.35 — expect wider price swings.

PSO is growing revenue faster at 3.3% — sustainability is the question.

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

Bottom Line

PSO scores higher overall (41/100 vs 37/100). TDAY offers better value entry with a 52.7% margin of safety. Both earn "Hold" 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.

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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USA TODAY Co., Inc.

COMMUNICATION SERVICES · PUBLISHING · USA

USA TODAY Co., Inc. is a media and digital marketing solutions company in the United States. The company is headquartered in New York, New York.

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