John Wiley & Sons (NYSE:WLYB – Get Rating) and Pearson (NYSE:PSO – Get Rating) are both mid-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Institutional and Insider Ownership
9.5% of Pearson shares are held by institutional investors. 29.7% of John Wiley & Sons shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares John Wiley & Sons and Pearson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John Wiley & Sons||7.06%||18.61%||6.04%|
Volatility and Risk
John Wiley & Sons has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
Earnings & Valuation
This table compares John Wiley & Sons and Pearson’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|John Wiley & Sons||$1.94 billion||1.49||$148.26 million||$2.59||19.99|
|Pearson||$4.71 billion||1.63||$218.64 million||N/A||N/A|
Pearson has higher revenue and earnings than John Wiley & Sons.
This is a breakdown of recent ratings for John Wiley & Sons and Pearson, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John Wiley & Sons||0||0||0||0||N/A|
John Wiley & Sons pays an annual dividend of $1.38 per share and has a dividend yield of 2.7%. Pearson pays an annual dividend of $0.38 per share and has a dividend yield of 3.7%. John Wiley & Sons pays out 53.3% of its earnings in the form of a dividend.
Pearson beats John Wiley & Sons on 7 of the 12 factors compared between the two stocks.
About John Wiley & Sons (Get Rating)
John Wiley & Sons, Inc. operates as a research and education company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services. The Research Publishing & Platforms segment offers scientific, technical, medical, and scholarly journals, as well as related content and services to learned societies, individual researchers, other professionals, and academic, corporate, and government libraries. This segment also publishes physical sciences and engineering, health sciences, social sciences, and humanities and life sciences journals; and provides a publishing software and service for scholarly and professional societies, and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum platform. It sells and distributes its products through various channels, including research libraries and library consortia, and independent subscription agents, as well as directly to professional society members, and other customers. The Academic & Professional Learning segment provides scientific, professional, and education print and digital books, digital courseware, and test preparation services to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals. This segment distributes its products through chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, Websites, distributor networks, and other online applications. The Education Services segment provides online program management services for higher education institutions and mthree talent placement services for professionals and businesses. The company was founded in 1807 and is headquartered in Hoboken, New Jersey.
About Pearson (Get Rating)
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications. 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 Higher Education segment provides the US, Canadian, and international higher education courseware businesses. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Pearson college, and apprenticeships. Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.
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