Critical Analysis: Atlanta Braves (NASDAQ:BATRA) & Pearson (NYSE:PSO)

Pearson (NYSE:PSO) and Atlanta Braves (NASDAQ:BATRA) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Volatility & Risk

Pearson has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Atlanta Braves has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Pearson and Atlanta Braves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pearson	N/A	N/A	N/A
Atlanta Braves	-2.99%	-3.98%	-1.30%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pearson	$4.54 billion	1.97	$554.61 million	$0.94	14.72
Atlanta Braves	$662.75 million	4.32	-$31.27 million	($0.35)	-130.43

Pearson has higher revenue and earnings than Atlanta Braves. Atlanta Braves is trading at a lower price-to-earnings ratio than Pearson, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.1% of Pearson shares are held by institutional investors. Comparatively, 12.3% of Atlanta Braves shares are held by institutional investors. 0.1% of Pearson shares are held by company insiders. Comparatively, 5.9% of Atlanta Braves shares are held by company 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 Pearson and Atlanta Braves, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearson	0	1	1	1	3.00
Atlanta Braves	0	1	1	0	2.50

Pearson currently has a consensus target price of $18.00, suggesting a potential upside of 30.10%. Atlanta Braves has a consensus target price of $52.50, suggesting a potential upside of 15.01%. Given Pearson’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pearson is more favorable than Atlanta Braves.

Summary

Pearson beats Atlanta Braves on 10 of the 14 factors compared between the two stocks.

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.

About Atlanta Braves

Atlanta Braves Holdings, Inc. owns and operates the Atlanta Braves Major league baseball club. It also operates mixed-use development project, including retail, office, hotel, and entertainment projects. The company was incorporated in 2022 and is based in Englewood, Colorado.