John Wiley & Sons (NYSE:JW.B) and Pearson (NYSE:PSO) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
John Wiley & Sons pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Pearson pays an annual dividend of $0.14 per share and has a dividend yield of 1.2%. Pearson pays out 20.0% of its earnings in the form of a dividend.
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||11.65%||16.49%||6.80%|
Institutional and Insider Ownership
1.4% of Pearson shares are owned by institutional investors. 29.7% of John Wiley & Sons shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
John Wiley & Sons has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for John Wiley & Sons and Pearson, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John Wiley & Sons||0||0||0||0||N/A|
Valuation & Earnings
This table compares John Wiley & Sons and Pearson’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|John Wiley & Sons||$1.80 billion||1.80||$192.18 million||N/A||N/A|
|Pearson||$5.81 billion||1.61||$523.25 million||$0.70||17.09|
Pearson has higher revenue and earnings than John Wiley & Sons.
John Wiley & Sons beats Pearson on 8 of the 12 factors compared between the two stocks.
John Wiley & Sons Company Profile
John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.
Pearson Company Profile
Pearson plc provides educational products and services to institutions, governments, professional bodies, and individual learners worldwide. The company operates through three segments: North America, Core, and Growth. It offers courseware services, including curriculum materials provided in book form and/or via access to digital content; and assessments, such as test development, processing, and scoring services. The company also operates schools, colleges, and universities; and English language teaching centers, as well as provides online learning services in partnership with universities and other academic institutions. In addition, it sells books; delivers and installs off -the-shelf software; and provides services to academic institutions, such as program development, student acquisition, education technology, and student support services, as well as undertakes contracts to process qualifying tests for individual professions and government departments under multi-year contractual arrangements. The company was founded in 1844 and is headquartered in London, the United Kingdom.
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