WallStSmart

Pearson PLC ADR (PSO)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 31% more annual revenue ($3.63B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 8.8%. RDDT appears more attractively valued with a PEG of 0.76. RDDT earns a higher WallStSmart Score of 77/100 (B+).

PSO

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 4.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.97

RDDT

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.3Quality: 9.0
Piotroski: 4/9Altman Z: 7.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSOSignificantly Overvalued (-16.9%)

Margin of Safety

-16.9%

Fair Value

$10.39

Current Price

$17.32

$6.93 premium

UndervaluedFair: $10.39Overvalued
RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$129.90

$7.88 premium

UndervaluedFair: $137.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSO2 strengths · Avg: 8.5/10
Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

RDDT6 strengths · Avg: 9.8/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Revenue GrowthGrowth
61.1%10/10

Revenue surging 61.1% year-over-year

EPS GrowthGrowth
177.8%10/10

Earnings expanding 177.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.6610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.5%9/10

Every $100 of equity generates 27 in profit

Areas to Watch

PSO4 concerns · Avg: 4.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
27.2x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

RDDT1 concerns · Avg: 4.0/10
P/E RatioValuation
36.3x4/10

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 : RDDT

The strongest argument for RDDT centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 31.4% and operating margin at 28.8%. Revenue growth of 61.1% demonstrates continued momentum.

Bear Case : PSO

The primary concerns for PSO are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

PSO profiles as a value stock while RDDT is a growth play — different risk/reward profiles.

RDDT carries more volatility with a beta of 2.05 — expect wider price swings.

RDDT is growing revenue faster at 61.1% — sustainability is the question.

PSO generates stronger free cash flow (316M), providing more financial flexibility.

Bottom Line

RDDT scores higher overall (77/100 vs 42/100), backed by strong 31.4% margins and 61.1% revenue growth. Both earn "Strong 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.

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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Reddit, Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.

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