WallStSmart

Educational Development Corporation (EDUC)vsPearson PLC ADR (PSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 13998% more annual revenue ($3.58B vs $25.37M). EDUC leads profitability with a 16.1% profit margin vs 9.4%. EDUC appears more attractively valued with a PEG of 2.01. EDUC earns a higher WallStSmart Score of 55/100 (C).

EDUC

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 4.5Value: 10.0Quality: 7.5
Piotroski: 2/9Altman Z: 1.78

PSO

Hold

39

out of 100

Grade: F

Growth: 2.7Profit: 6.0Value: 4.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUCUndervalued (+93.6%)

Margin of Safety

+93.6%

Fair Value

$22.00

Current Price

$1.30

$20.70 discount

UndervaluedFair: $22.00Overvalued
PSOSignificantly Overvalued (-163.0%)

Margin of Safety

-163.0%

Fair Value

$4.62

Current Price

$12.81

$8.19 premium

UndervaluedFair: $4.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDUC4 strengths · Avg: 9.8/10
P/E RatioValuation
2.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
2187.8%10/10

Earnings expanding 2187.8% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

PSO1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

EDUC4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.784/10

Distress zone — elevated risk

Market CapQuality
$10.81M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PSO4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

PEG RatioValuation
3.602/10

Expensive relative to growth rate

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : EDUC

The strongest argument for EDUC centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 16.1% and operating margin at -21.5%.

Bull Case : PSO

The strongest argument for PSO centers on Price/Book.

Bear Case : EDUC

The primary concerns for EDUC are PEG Ratio, Altman Z-Score, Market Cap.

Bear Case : PSO

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

Key Dynamics to Monitor

EDUC profiles as a declining stock while PSO is a value play — different risk/reward profiles.

EDUC carries more volatility with a beta of 1.02 — 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.

Bottom Line

EDUC scores higher overall (55/100 vs 39/100), backed by strong 16.1% margins. Both earn "Buy" 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.

Educational Development Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Educational Development Corporation, a publishing company, is a commercial co-publisher of educational children's books in the United States. The company is headquartered in Tulsa, Oklahoma.

Visit Website →

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 →

Want to dig deeper into these stocks?