Baidu Inc (BIDU)vsPearson PLC ADR (PSO)
BIDU
Baidu Inc
$121.66
-9.75%
COMMUNICATION SERVICES · Cap: $41.21B
PSO
Pearson PLC ADR
$15.56
+1.70%
COMMUNICATION SERVICES · Cap: $9.29B
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 0.68. BIDU earns a higher WallStSmart Score of 47/100 (D+).
BIDU
Hold47
out of 100
Grade: D+
PSO
Hold41
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BIDU.
Margin of Safety
-21.1%
Fair Value
$10.03
Current Price
$15.56
$5.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Generating 2.7B in free cash flow
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Areas to Watch
ROE of 7.7% — below average capital efficiency
1.0% margin — thin
Weak financial health signals
Revenue declined 1.2%
Expensive relative to growth rate
3.2% revenue growth
Grey zone — moderate risk
Earnings declined 35.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.68 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 0.53 — expect wider price swings.
PSO is growing revenue faster at 3.2% — sustainability is the question.
BIDU generates stronger free cash flow (2.7B), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BIDU scores higher overall (47/100 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.
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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