News (NWS) Competitors

News (NASDAQ:NWS) and Pearson (NYSE:PSO) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, media sentiment, valuation, dividends, risk, institutional ownership, community ranking, analyst recommendations and profitability.

Do insiders & institutionals believe in NWS or PSO?

14.6% of News shares are owned by institutional investors. Comparatively, 2.1% of Pearson shares are owned by institutional investors. 13.7% of News shares are owned by insiders. Comparatively, 0.1% of Pearson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Do analysts recommend NWS or PSO?

Pearson has a consensus target price of $18.00, indicating a potential upside of 11.80%. Given Pearson's higher probable upside, analysts plainly believe Pearson is more favorable than News.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
News	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	2 Strong Buy rating(s)	4.00
Pearson	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	3.50

Which has better earnings and valuation, NWS or PSO?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
News	$10.25B	1.66	$266M	$0.73	41.10
Pearson	$3.55B	3.02	$470.19M	$0.94	17.13

Does the media prefer NWS or PSO?

In the previous week, News had 5 more articles in the media than Pearson. MarketBeat recorded 16 mentions for News and 11 mentions for Pearson. Pearson's average media sentiment score of 0.58 beat News' score of 0.47 indicating that Pearson is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
News	1 Very Positive mention(s)	10 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Pearson	3 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community prefer NWS or PSO?

Pearson received 103 more outperform votes than News when rated by MarketBeat users. However, 60.83% of users gave News an outperform vote while only 48.46% of users gave Pearson an outperform vote.

Company	Underperform	Outperform
News	Outperform Votes 306 60.83%	Underperform Votes 197 39.17%
Pearson	Outperform Votes 409 48.46%	Underperform Votes 435 51.54%

Is NWS or PSO a better dividend stock?

News pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Pearson pays an annual dividend of $0.41 per share and has a dividend yield of 2.5%. News pays out 27.4% of its earnings in the form of a dividend. Pearson pays out 43.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Is NWS or PSO more profitable?

News has a net margin of 4.22% compared to Pearson's net margin of 0.00%. News' return on equity of 5.31% beat Pearson's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
News	4.22%	5.31%	2.89%
Pearson	N/A	N/A	N/A

Which has more volatility and risk, NWS or PSO?

News has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

News beats Pearson on 13 of the 21 factors compared between the two stocks.