Reservoir Media (NASDAQ:RSVR) vs. Pearson (NYSE:PSO) Head to Head Survey

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

Volatility and Risk

Reservoir Media has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reservoir Media	5.78%	2.62%	1.11%
Pearson	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reservoir Media	$158.71 million	3.13	$7.75 million	$0.14	54.07
Pearson	$3.52 billion	2.53	$554.61 million	N/A	N/A

Pearson has higher revenue and earnings than Reservoir Media.

Institutional and Insider Ownership

44.4% of Reservoir Media shares are owned by institutional investors. Comparatively, 2.1% of Pearson shares are owned by institutional investors. 27.0% of Reservoir Media shares are owned by insiders. Comparatively, 0.1% of Pearson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Reservoir Media and Pearson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reservoir Media	0	2	1	0	2.33
Pearson	0	2	2	1	2.80

Reservoir Media currently has a consensus target price of $11.50, suggesting a potential upside of 51.92%. Pearson has a consensus target price of $18.00, suggesting a potential upside of 28.30%. Given Reservoir Media’s higher probable upside, equities analysts plainly believe Reservoir Media is more favorable than Pearson.

Summary

Reservoir Media beats Pearson on 8 of the 13 factors compared between the two stocks.

About Reservoir Media

Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York.

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.