Pearson, PLC (NYSE: PSO) and McClatchy Company (The) (NYSE:MNI) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitabiliy, valuation and dividends.

Volatility and Risk

Pearson, PLC has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, McClatchy Company (The) has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Dividends

Pearson, PLC pays an annual dividend of $0.67 per share and has a dividend yield of 8.1%. McClatchy Company (The) does not pay a dividend.

Profitability

This table compares Pearson, PLC and McClatchy Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pearson, PLC N/A N/A N/A
McClatchy Company (The) -12.19% -16.20% -1.02%

Earnings and Valuation

This table compares Pearson, PLC and McClatchy Company (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pearson, PLC $5.92 billion 1.14 $746.79 million N/A N/A
McClatchy Company (The) $960.33 million 0.05 $134.46 million ($15.39) -0.58

Pearson, PLC has higher revenue and earnings than McClatchy Company (The).

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pearson, PLC and McClatchy Company (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pearson, PLC 5 5 3 0 1.85
McClatchy Company (The) 0 0 1 0 3.00

Insider & Institutional Ownership

2.0% of Pearson, PLC shares are owned by institutional investors. Comparatively, 39.9% of McClatchy Company (The) shares are owned by institutional investors. 34.9% of McClatchy Company (The) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Pearson, PLC beats McClatchy Company (The) on 8 of the 12 factors compared between the two stocks.

About Pearson, PLC

Pearson plc (Pearson) is a learning company. The Company delivers learning through providing a range of educational products and services to institutions, governments, professional bodies and individual learners. The Company operates through three segments, which include North America, Core and Growth. The Company’s North America segment includes Courseware, Assessments and Services businesses in the United States and Canada. The Company’s Core segment includes Courseware, Assessments and Services businesses in more mature markets including the United Kingdom, Australia and Italy. The Company’s Growth segment includes Courseware, Assessments and Services businesses in emerging markets including Brazil, China, India and South Africa. The Company provides content, assessment and digital services to schools, colleges and universities, as well as professional and vocational education to learners to help increase their skills and employability prospects.

About McClatchy Company (The)

The McClatchy Company is a news and information publisher of various publications, such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. The Company’s segments include Western Segment and Eastern Segment. Its Western Segment consists of its newspaper operations in California, the Northwest and the Midwest. The Company’s Eastern Segment consists primarily of newspaper operations in the Southeast and Florida. The Company operates 30 media companies in 29 United States markets in 14 states, providing each of these communities with news and advertising services in a range of digital and print formats. The Company’s operations include approximately 30 local media businesses United States that consist of daily newspapers, Websites and mobile applications, publications, direct marketing, direct mail services and community newspapers.

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