Baidu Inc (BIDU)vsPearson PLC ADR (PSO)
BIDU
Baidu Inc
$126.53
+4.56%
COMMUNICATION SERVICES · Cap: $41.17B
PSO
Pearson PLC ADR
$14.68
+1.59%
COMMUNICATION SERVICES · Cap: $8.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Baidu Inc generates 3509% more annual revenue ($129.08B vs $3.58B). PSO leads profitability with a 9.4% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.72. BIDU earns a higher WallStSmart Score of 46/100 (D+).
BIDU
Hold46
out of 100
Grade: D+
PSO
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BIDU.
Margin of Safety
-6.8%
Fair Value
$11.38
Current Price
$14.68
$3.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
ROE of 1.9% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.5%
Weak financial health signals
3.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 35.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bull Case : PSO
The strongest argument for PSO centers on Price/Book.
Bear Case : BIDU
The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 70.3x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Bear Case : PSO
The primary concerns for PSO are Revenue Growth, Altman Z-Score, PEG Ratio.
Key Dynamics to Monitor
BIDU carries more volatility with a beta of 0.43 — 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 (46/100 vs 39/100). 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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