Analyzing Pearson (NYSE:PSO) & Sycamore Entertainment Group (OTCMKTS:SEGI)

Sycamore Entertainment Group (OTCMKTS:SEGI) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Sycamore Entertainment Group and Pearson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sycamore Entertainment Group	0	0	0	0	0.00
Pearson	0	1	2	1	3.00

Pearson has a consensus price target of $18.00, suggesting a potential upside of 26.36%. Given Pearson’s stronger consensus rating and higher possible upside, analysts clearly believe Pearson is more favorable than Sycamore Entertainment Group.

Earnings & Valuation

This table compares Sycamore Entertainment Group and Pearson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sycamore Entertainment Group	N/A	N/A	N/A	N/A	N/A
Pearson	$4.54 billion	2.03	$554.61 million	$0.94	15.15

Pearson has higher revenue and earnings than Sycamore Entertainment Group.

Volatility and Risk

Sycamore Entertainment Group has a beta of 62.15, indicating that its stock price is 6,115% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Sycamore Entertainment Group and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sycamore Entertainment Group	N/A	N/A	N/A
Pearson	N/A	N/A	N/A

Insider & Institutional Ownership

2.1% of Pearson shares are owned by institutional investors. 75.5% of Sycamore Entertainment Group shares are owned by insiders. Comparatively, 0.1% of Pearson shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Pearson beats Sycamore Entertainment Group on 6 of the 8 factors compared between the two stocks.

About Sycamore Entertainment Group

Sycamore Entertainment Group, Inc., a diversified entertainment company, which specializes in the acquisition, marketing, and worldwide distribution of feature-length motion pictures. The company is based in Seattle, Washington.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.