Pearson (NYSE:PSO) and Lingo Media (OTCMKTS:LMDCF) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares Pearson and Lingo Media’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pearson $5.81 billion 1.62 $523.25 million $0.70 17.26
Lingo Media $2.14 million 0.83 -$4.83 million N/A N/A

Pearson has higher revenue and earnings than Lingo Media.

Analyst Ratings

This is a summary of recent ratings and price targets for Pearson and Lingo Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pearson 2 3 0 0 1.60
Lingo Media 0 0 0 0 N/A

Dividends

Pearson pays an annual dividend of $0.14 per share and has a dividend yield of 1.2%. Lingo Media does not pay a dividend. Pearson pays out 20.0% of its earnings in the form of a dividend.

Profitability

This table compares Pearson and Lingo Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pearson N/A N/A N/A
Lingo Media -300.19% -1,572.88% -436.71%

Volatility & Risk

Pearson has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Lingo Media has a beta of -0.7, suggesting that its stock price is 170% less volatile than the S&P 500.

Insider & Institutional Ownership

1.4% of Pearson shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Pearson beats Lingo Media on 9 of the 10 factors compared between the two stocks.

Pearson Company Profile

Pearson plc provides educational products and services to institutions, governments, professional bodies, and individual learners worldwide. The company operates through three segments: North America, Core, and Growth. It offers courseware services, including curriculum materials provided in book form and/or via access to digital content; and assessments, such as test development, processing, and scoring services. The company also operates schools, colleges, and universities; and English language teaching centers, as well as provides online learning services in partnership with universities and other academic institutions. In addition, it sells books; delivers and installs off -the-shelf software; and provides services to academic institutions, such as program development, student acquisition, education technology, and student support services, as well as undertakes contracts to process qualifying tests for individual professions and government departments under multi-year contractual arrangements. The company was founded in 1844 and is headquartered in London, the United Kingdom.

Lingo Media Company Profile

Lingo Media Corporation develops, markets, and supports a suite of English language learning solutions in the People's Republic of China. The company operates in two segments, Print-based English Language Learning and Online English Language Learning. The Print-based English Language Learning segment publishes print-based English language learning textbook programs. It has co-published approximately 600 million units from library of program titles. This segment prints and sells Lingo Learning's English language training programs to provincial distributors; and licenses Lingo Learning's English language training programs to provincial publishers who print and sell the programs to provincial distributors. The Online English Language Learning segment provides Web-based educational technology English language learning training and assessment solutions, such as Web-based software licensing subscriptions, online and professional services, audio practice tools, and multi-platform applications. It offers 2,000 hours of interactive learning through various product offerings that include Winnie's World, English Academy, Scholar, Campus, English for Success, and Master and English for Success. This segment also markets its products in Latin America through a network of distributors. Lingo Media Corporation is headquartered in Toronto, Canada.

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