WallStSmart

Baidu Inc (BIDU)vsPearson PLC ADR (PSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 3498% more annual revenue ($128.70B vs $3.58B). PSO leads profitability with a 9.4% profit margin vs 1.0%. BIDU appears more attractively valued with a PEG of 0.79. BIDU earns a higher WallStSmart Score of 50/100 (D+).

BIDU

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 4.5Value: 6.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.18

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

Intrinsic value data unavailable for BIDU.

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

BIDU2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

PEG RatioValuation
0.798/10

Growing faster than its price suggests

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

BIDU4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.4%3/10

ROE of 3.4% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

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 : BIDU

The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bull Case : PSO

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

Bear Case : BIDU

The primary concerns for BIDU are Return on Equity, Profit Margin, Piotroski F-Score. Thin 1.0% margins leave little buffer for downturns.

Bear Case : PSO

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

Key Dynamics to Monitor

BIDU carries more volatility with a beta of 0.56 — 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 INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BIDU scores higher overall (50/100 vs 40/100). 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.

Baidu Inc

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China

Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.

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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