Sycamore Entertainment Group (OTCMKTS:SEGI) & Pearson (NYSE:PSO) Critical Comparison

Sycamore Entertainment Group (OTCMKTS:SEGI) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Earnings and Valuation

This table compares Sycamore Entertainment Group and Pearson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sycamore Entertainment Group	N/A	N/A	N/A	N/A	N/A
Pearson	$4.54 billion	2.03	$554.61 million	$0.94	15.13

Pearson has higher revenue and earnings than Sycamore Entertainment Group.

Risk & Volatility

Sycamore Entertainment Group has a beta of 62.15, indicating that its share price is 6,115% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sycamore Entertainment Group and Pearson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sycamore Entertainment Group	0	0	0	0	0.00
Pearson	0	1	1	1	3.00

Pearson has a consensus target price of $18.00, indicating a potential upside of 26.54%. Given Pearson’s stronger consensus rating and higher probable upside, analysts plainly believe Pearson is more favorable than Sycamore Entertainment Group.

Profitability

This table compares Sycamore Entertainment Group and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sycamore Entertainment Group	N/A	N/A	N/A
Pearson	N/A	N/A	N/A

Insider & Institutional Ownership

2.1% of Pearson shares are held by institutional investors. 75.5% of Sycamore Entertainment Group shares are held by insiders. Comparatively, 0.1% of Pearson shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Pearson beats Sycamore Entertainment Group on 6 of the 8 factors compared between the two stocks.

About Sycamore Entertainment Group

Sycamore Entertainment Group, Inc., a diversified entertainment company, which specializes in the acquisition, marketing, and worldwide distribution of feature-length motion pictures. The company is based in Seattle, Washington.

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.