Pearson (NYSE:PSO) versus Four Seasons Education (Cayman) (NYSE:FEDU) Head to Head Review

Four Seasons Education (Cayman) (NYSE:FEDU) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Valuation and Earnings

This table compares Four Seasons Education (Cayman) and Pearson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Seasons Education (Cayman)	$37.10 million	0.45	$4.49 million	N/A	N/A
Pearson	$3.63 billion	2.72	$441.77 million	N/A	N/A

Pearson has higher revenue and earnings than Four Seasons Education (Cayman).

Analyst Ratings

This is a summary of current recommendations for Four Seasons Education (Cayman) and Pearson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Seasons Education (Cayman)	1	0	0	0	1.00
Pearson	0	5	2	0	2.29

Risk and Volatility

Four Seasons Education (Cayman) has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Four Seasons Education (Cayman) and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Seasons Education (Cayman)	N/A	N/A	N/A
Pearson	N/A	N/A	N/A

Insider and Institutional Ownership

4.3% of Four Seasons Education (Cayman) shares are owned by institutional investors. Comparatively, 2.1% of Pearson shares are owned by institutional investors. 45.8% of Four Seasons Education (Cayman) shares are owned by company insiders. Comparatively, 0.1% of Pearson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Pearson beats Four Seasons Education (Cayman) on 6 of the 8 factors compared between the two stocks.

About Four Seasons Education (Cayman)

Four Seasons Education (Cayman) Inc. provides after-school education services for kindergarten, elementary, and middle school students in the People’s Republic of China and internationally. It also offers consulting services; and tourism services, including travel agency services. The company was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.

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.