IHG vs. PSO: InterContinental Hotels vs. Pearson Stock Comparison

November 11, 2026

How do InterContinental Hotels (IHG) and Pearson (PSO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

InterContinental Hotels (IHG) and Pearson (PSO) both fall under the Consumer Services industry group, but IHG is classified in Hotels, Restaurants & Leisure while PSO is classified in Diversified Consumer Services.

Both InterContinental Hotels (IHG) and Pearson (PSO) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for InterContinental Hotels (IHG) and Pearson (PSO)
Profile Item	IHG	PSO
Name	InterContinental Hotels Group PLC ADR	Pearson plc Sponsored ADR
Country/Region	United Kingdom	United Kingdom
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry Group	Consumer Services	Consumer Services
GICS Industry	Hotels, Restaurants & Leisure	Diversified Consumer Services
GICS Sub-Industry	Hotels, Resorts & Cruise Lines	Education Services
Market Capitalization	26.05 billion USD	10.38 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	April 10, 2003	November 18, 1996
Security Type	ADR	ADR

Price Performance

Cumulative Growth

IHG

PSO

GSPC

InterContinental Hotels (IHG) vs. Pearson (PSO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for InterContinental Hotels (IHG) and Pearson (PSO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for InterContinental Hotels (IHG) and Pearson (PSO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Total Return (1Y)	39.88%	34.42%
Total Return (3Y, Annualized)	37.41%	15.38%
Total Return (5Y, Annualized)	22.58%	17.99%

Risk Profile

Drawdown History

IHG

PSO

GSPC

InterContinental Hotels (IHG) vs. Pearson (PSO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for InterContinental Hotels (IHG) and Pearson (PSO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Volatility (1Y, Annualized)	25.00%	25.07%
Beta (5Y)	1.09	0.43
Max Drawdown (5Y)	-32.78%	-30.73%
Avg. Volume (3M)	213.26K	698.84K

Risk-Adjusted Performance

Risk-Return Positioning

IHG and PSO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Sharpe Ratio (1Y)	1.42	1.20
Sortino Ratio (1Y)	2.31	1.67

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Pearson (PSO) earns 9.16% on shareholders’ equity, ranked against its industry; InterContinental Hotels (IHG) has no ROE this period.

IHG

Consumer Services industry group

Max: 76.75%
Q3: 34.07%
Median: 15.90%
Q1: 3.23%
Min: -40.61%
IHG: --

PSO

Consumer Services industry group

9.16%

Max: 76.75%
Q3: 34.07%
Median: 15.90%
PSO: 9.16%
Q1: 3.23%
Min: -40.61%

InterContinental Hotels (IHG) vs. Pearson (PSO): IHG does not report ROE, so it has no value marker; PSO is benchmarked against the Consumer Services industry group.

Net Margin (TTM)

InterContinental Hotels (IHG) at 13.40% retains a top-quartile share of revenue as profit, ahead of Pearson (PSO) at 8.78%, which keeps about the industry-typical share.

IHG

Consumer Services industry group

13.40%

Max: 25.52%
IHG: 13.40%
Q3: 12.95%
Median: 6.63%
Q1: 1.46%
Min: -14.36%

PSO

Consumer Services industry group

8.78%

Max: 25.52%
Q3: 12.95%
PSO: 8.78%
Median: 6.63%
Q1: 1.46%
Min: -14.36%

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

InterContinental Hotels (IHG) at 25.12% operates in the top operating margin quartile, ahead of Pearson (PSO) at 13.32%, which runs around its industry’s norm.

IHG

Consumer Services industry group

25.12%

Max: 49.05%
IHG: 25.12%
Q3: 24.35%
Median: 14.23%
Q1: 5.67%
Min: -16.47%

PSO

Consumer Services industry group

13.32%

Max: 49.05%
Q3: 24.35%
Median: 14.23%
PSO: 13.32%
Q1: 5.67%
Min: -16.47%

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
ROE (TTM)	--	9.16%
ROA (TTM)	15.51%	5.09%
Net Margin (TTM)	13.40%	8.78%
Operating Margin (TTM)	25.12%	13.32%
Gross Margin (TTM)	60.97%	52.04%

Growth

Revenue Growth

InterContinental Hotels (IHG) at 5.40% is around its peer norm for revenue growth, while Pearson (PSO) at 0.70% drops into the bottom quartile, signaling weaker demand or pricing momentum.

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Pearson (PSO) reports EPS growth of -20.16%, ranked against its industry; InterContinental Hotels (IHG) has no EPS growth figure this period.

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Revenue Growth (YoY)	5.40%	0.70%
Revenue Growth (3Y CAGR)	10.06%	-2.35%
EPS Growth (YoY)	--	-20.16%
EPS Growth (3Y CAGR)	33.17%	15.86%

Financial Strength

Current Ratio (MRQ)

Pearson (PSO) at 2.00 carries current ratio above its industry’s typical mid-range, while InterContinental Hotels (IHG) at 0.66 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

IHG

Consumer Services industry group

0.66

Max: 3.41
Q3: 1.85
Median: 1.06
Q1: 0.72
IHG: 0.66
Min: 0.22

PSO

Consumer Services industry group

2.00

Max: 3.41
PSO: 2.00
Q3: 1.85
Median: 1.06
Q1: 0.72
Min: 0.22

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their current ratio against the Consumer Services industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Pearson (PSO) carries debt-to-equity ratio of 0.52 against its industry range, while InterContinental Hotels (IHG) reports no figure this period.

IHG

Consumer Services industry group

Max: 6.12
Q3: 2.93
Median: 1.29
Q1: 0.37
Min: 0.01
IHG: --

PSO

Consumer Services industry group

0.52

Max: 6.12
Q3: 2.93
Median: 1.29
PSO: 0.52
Q1: 0.37
Min: 0.01

InterContinental Hotels (IHG) vs. Pearson (PSO): IHG does not report debt-to-equity ratio, so it has no value marker; PSO is benchmarked against the Consumer Services industry group.

Financial Strength Metrics

Financial strength metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Current Ratio (MRQ)	0.66	2.00
Debt / Equity (MRQ)	--	0.52
Net Debt / EBITDA	2.89	2.35

Dividends

Dividend Yield (TTM)

Both InterContinental Hotels (IHG) at 1.08% and Pearson (PSO) at 1.46% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

IHG

Consumer Services industry group

1.08%

Max: 4.10%
Q3: 1.82%
IHG: 1.08%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PSO

Consumer Services industry group

1.46%

Max: 4.10%
Q3: 1.82%
PSO: 1.46%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both InterContinental Hotels (IHG) at 39.21% and Pearson (PSO) at 51.09% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

IHG

Consumer Services industry group

39.21%

Max: 89.80%
IHG: 39.21%
Q3: 36.83%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PSO

Consumer Services industry group

51.09%

Max: 89.80%
PSO: 51.09%
Q3: 36.83%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
Dividend Yield (TTM)	1.08%	1.46%
Dividend Payout Ratio (TTM)	39.21%	51.09%

Valuation

P/E Ratio (TTM)

Pearson (PSO) at 25.78 is near its industry’s usual P/E ratio, while InterContinental Hotels (IHG) at 37.95 sits in the richer quartile — IHG needs stronger growth or earnings quality to justify the premium.

IHG

Consumer Services industry group

37.95

Max: 71.70
IHG: 37.95
Q3: 37.12
Median: 21.88
Q1: 13.00
Min: 5.72

PSO

Consumer Services industry group

25.78

Max: 71.70
Q3: 37.12
PSO: 25.78
Median: 21.88
Q1: 13.00
Min: 5.72

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Pearson (PSO) at 2.86 is priced about in line with its industry on P/S ratio, while InterContinental Hotels (IHG) at 4.89 sits in the pricier quartile — IHG costs more per dollar of sales.

IHG

Consumer Services industry group

4.89

Max: 6.40
IHG: 4.89
Q3: 3.01
Median: 1.54
Q1: 0.74
Min: 0.08

PSO

Consumer Services industry group

2.86

Max: 6.40
Q3: 3.01
PSO: 2.86
Median: 1.54
Q1: 0.74
Min: 0.08

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

InterContinental Hotels (IHG) reports a negative P/B ratio of -53.91, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Pearson (PSO) reports 2.38, ranking against industry peers normally.

IHG

Consumer Services industry group

-53.91

Max: 12.02
Q3: 5.58
Median: 2.37
Q1: 1.09
Min: -4.51
IHG: -53.91

PSO

Consumer Services industry group

2.38

Max: 12.02
Q3: 5.58
PSO: 2.38
Median: 2.37
Q1: 1.09
Min: -4.51

InterContinental Hotels (IHG) vs. Pearson (PSO): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for InterContinental Hotels (IHG) and Pearson (PSO)
Metric	IHG	PSO
P/E Ratio (TTM)	37.95	25.78
P/S Ratio (TTM)	4.89	2.86
P/B Ratio (MRQ)	-53.91	2.38
Free Cash Flow Yield (TTM)	3.51%	8.08%