WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 57% more annual revenue ($3.58B vs $2.28B). PSO leads profitability with a 9.4% profit margin vs 1.3%. TDAY appears more attractively valued with a PEG of 0.94. TDAY earns a higher WallStSmart Score of 49/100 (D+).

PSO

Hold

41

out of 100

Grade: D

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

TDAY

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 6.0Value: 7.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSOSignificantly Overvalued (-21.1%)

Margin of Safety

-21.1%

Fair Value

$10.03

Current Price

$15.56

$5.53 premium

UndervaluedFair: $10.03Overvalued
TDAYUndervalued (+54.7%)

Margin of Safety

+54.7%

Fair Value

$13.40

Current Price

$8.17

$5.23 discount

UndervaluedFair: $13.40Overvalued

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
2.0x8/10

Reasonable price relative to book value

TDAY2 strengths · Avg: 8.5/10
Return on EquityProfitability
20.4%9/10

Every $100 of equity generates 20 in profit

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Areas to Watch

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%

TDAY4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.13B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

P/E RatioValuation
42.6x2/10

Premium valuation, high expectations priced in

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 Return on Equity, 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 EPS Growth, Market Cap, Profit Margin. A P/E of 42.6x leaves little room for execution misses. Debt-to-equity of 7.98 is elevated, increasing financial risk.

Key Dynamics to Monitor

TDAY carries more volatility with a beta of 1.42 — 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

TDAY scores higher overall (49/100 vs 41/100). 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.

Visit Website →

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.

Want to dig deeper into these stocks?