WallStSmart

Pearson PLC ADR (PSO)vsJohn Wiley & Sons (WLY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Pearson PLC ADR generates 114% more annual revenue ($3.58B vs $1.67B). PSO leads profitability with a 9.4% profit margin vs 9.2%. PSO appears more attractively valued with a PEG of 2.00. WLY earns a higher WallStSmart Score of 57/100 (C).

PSO

Hold

41

out of 100

Grade: D

Growth: 2.7Profit: 6.5Value: 4.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.94

WLY

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSOSignificantly Overvalued (-21.1%)

Margin of Safety

-21.1%

Fair Value

$10.03

Current Price

$15.56

$5.53 premium

UndervaluedFair: $10.03Overvalued
WLYUndervalued (+30.0%)

Margin of Safety

+30.0%

Fair Value

$42.16

Current Price

$44.16

$2.00 discount

UndervaluedFair: $42.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSO2 strengths · Avg: 8.5/10
Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

WLY2 strengths · Avg: 8.5/10
Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Areas to Watch

PSO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

WLY4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
13.052/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PSO

The strongest argument for PSO centers on Return on Equity, Price/Book.

Bull Case : WLY

The strongest argument for WLY centers on Return on Equity, P/E Ratio.

Bear Case : PSO

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

Bear Case : WLY

The primary concerns for WLY are Revenue Growth, Altman Z-Score, Debt/Equity.

Key Dynamics to Monitor

WLY carries more volatility with a beta of 0.80 — 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

WLY scores higher overall (57/100 vs 41/100). 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.

Visit Website →

John Wiley & Sons

COMMUNICATION SERVICES · PUBLISHING · USA

John Wiley & Sons, Inc. (WLY) is a premier global provider of educational materials and research solutions, committed to advancing knowledge across multiple sectors. Its diverse portfolio encompasses academic publishing, professional development resources, and cutting-edge digital platforms, effectively serving learners and professionals in a rapidly changing educational landscape. With a strategic focus on digital transformation and content accessibility, Wiley positions itself as a vital partner in enhancing educational and research productivity. The company's dedication to quality and innovation solidifies its reputation and leadership within the industry, ensuring it can adeptly respond to the evolving needs of its global clientele.

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