WallStSmart

Pearson PLC ADR (PSO)vsScholastic Corporation (SCHL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 122% more annual revenue ($3.58B vs $1.61B). PSO leads profitability with a 9.4% profit margin vs 3.9%. SCHL appears more attractively valued with a PEG of 1.80. SCHL earns a higher WallStSmart Score of 53/100 (C-).

PSO

Hold

39

out of 100

Grade: F

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

SCHL

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 3.5Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSOSignificantly Overvalued (-163.0%)

Margin of Safety

-163.0%

Fair Value

$4.62

Current Price

$12.81

$8.19 premium

UndervaluedFair: $4.62Overvalued
SCHLUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$112.79

Current Price

$38.86

$73.93 discount

UndervaluedFair: $112.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

SCHL3 strengths · Avg: 8.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
26.9%8/10

Earnings expanding 26.9% YoY

Areas to Watch

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%

SCHL4 concerns · Avg: 3.3/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Market CapQuality
$977.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : PSO

The strongest argument for PSO centers on Price/Book.

Bull Case : SCHL

The strongest argument for SCHL centers on Price/Book, P/E Ratio, EPS Growth.

Bear Case : PSO

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

Bear Case : SCHL

The primary concerns for SCHL are PEG Ratio, Market Cap, Return on Equity. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

SCHL carries more volatility with a beta of 1.18 — 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 PUBLISHING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SCHL scores higher overall (53/100 vs 39/100). 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.

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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Scholastic Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Scholastic Corporation publishes and distributes children's books worldwide. The company is headquartered in New York, New York.

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