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NBIS vs. PSO: A Head-to-Head Stock Comparison

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Here’s a clear look at NBIS and PSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

NBIS is a standard domestic listing, while PSO trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolNBISPSO
Company Name--Pearson plc
CountryNetherlandsUnited Kingdom
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustrySoftwareDiversified Consumer Services
Market Capitalization31.17 billion USD9.14 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 21, 2024November 18, 1996
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of NBIS and PSO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

NBIS vs. PSO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNBISPSO
5-Day Price Return11.29%0.81%
13-Week Price Return161.16%-0.93%
26-Week Price Return450.64%-12.97%
52-Week Price Return--3.72%
Month-to-Date Return11.29%0.33%
Year-to-Date Return351.05%-17.32%
10-Day Avg. Volume18.57M1.13M
3-Month Avg. Volume15.94M1.42M
3-Month Volatility120.41%19.56%
Beta0.600.41

Profitability

Return on Equity (TTM)

NBIS

7.44%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

NBIS’s Return on Equity of 7.44% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

PSO

11.56%

Diversified Consumer Services Industry

Max
32.84%
Q3
21.21%
Median
13.32%
Q1
11.02%
Min
0.11%

PSO’s Return on Equity of 11.56% is on par with the norm for the Diversified Consumer Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

NBIS vs. PSO: A comparison of their Return on Equity (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Net Profit Margin (TTM)

NBIS

-55.23%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

NBIS has a negative Net Profit Margin of -55.23%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

PSO

12.53%

Diversified Consumer Services Industry

Max
20.09%
Q3
13.26%
Median
12.53%
Q1
7.59%
Min
0.13%

PSO’s Net Profit Margin of 12.53% is aligned with the median group of its peers in the Diversified Consumer Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

NBIS vs. PSO: A comparison of their Net Profit Margin (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Operating Profit Margin (TTM)

NBIS

-37.08%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

NBIS has a negative Operating Profit Margin of -37.08%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

PSO

15.97%

Diversified Consumer Services Industry

Max
26.98%
Q3
22.01%
Median
15.97%
Q1
9.54%
Min
0.80%

PSO’s Operating Profit Margin of 15.97% is around the midpoint for the Diversified Consumer Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

NBIS vs. PSO: A comparison of their Operating Profit Margin (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Profitability at a Glance

SymbolNBISPSO
Return on Equity (TTM)7.44%11.56%
Return on Assets (TTM)6.44%6.72%
Net Profit Margin (TTM)-55.23%12.53%
Operating Profit Margin (TTM)-37.08%15.97%
Gross Profit Margin (TTM)4.01%51.45%

Financial Strength

Current Ratio (MRQ)

NBIS

14.71

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

NBIS’s Current Ratio of 14.71 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

PSO

2.31

Diversified Consumer Services Industry

Max
4.27
Q3
2.31
Median
1.58
Q1
0.90
Min
0.46

PSO’s Current Ratio of 2.31 aligns with the median group of the Diversified Consumer Services industry, indicating that its short-term liquidity is in line with its sector peers.

NBIS vs. PSO: A comparison of their Current Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NBIS

0.26

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

NBIS’s Debt-to-Equity Ratio of 0.26 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PSO

0.41

Diversified Consumer Services Industry

Max
1.12
Q3
0.64
Median
0.19
Q1
0.00
Min
0.00

PSO’s Debt-to-Equity Ratio of 0.41 is typical for the Diversified Consumer Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NBIS vs. PSO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Interest Coverage Ratio (TTM)

NBIS

-43.61

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

NBIS has a negative Interest Coverage Ratio of -43.61. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

PSO

13.44

Diversified Consumer Services Industry

Max
54.22
Q3
32.36
Median
10.70
Q1
4.19
Min
1.66

PSO’s Interest Coverage Ratio of 13.44 is positioned comfortably within the norm for the Diversified Consumer Services industry, indicating a standard and healthy capacity to cover its interest payments.

NBIS vs. PSO: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Financial Strength at a Glance

SymbolNBISPSO
Current Ratio (MRQ)14.712.31
Quick Ratio (MRQ)14.512.24
Debt-to-Equity Ratio (MRQ)0.260.41
Interest Coverage Ratio (TTM)-43.6113.44

Growth

Revenue Growth

NBIS vs. PSO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NBIS vs. PSO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NBIS

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

NBIS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

PSO

2.35%

Diversified Consumer Services Industry

Max
2.95%
Q3
1.55%
Median
0.01%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.35%, PSO offers a more attractive income stream than most of its peers in the Diversified Consumer Services industry, signaling a strong commitment to shareholder returns.

NBIS vs. PSO: A comparison of their Dividend Yield (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Dividend Payout Ratio (TTM)

NBIS

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

NBIS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

PSO

36.05%

Diversified Consumer Services Industry

Max
52.37%
Q3
25.79%
Median
0.07%
Q1
0.00%
Min
0.00%

PSO’s Dividend Payout Ratio of 36.05% is in the upper quartile for the Diversified Consumer Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

NBIS vs. PSO: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Dividend at a Glance

SymbolNBISPSO
Dividend Yield (TTM)0.00%2.35%
Dividend Payout Ratio (TTM)0.00%36.05%

Valuation

Price-to-Earnings Ratio (TTM)

NBIS

132.27

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

A P/E Ratio of 132.27 places NBIS in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

PSO

15.36

Diversified Consumer Services Industry

Max
38.85
Q3
31.29
Median
22.33
Q1
15.56
Min
7.57

In the lower quartile for the Diversified Consumer Services industry, PSO’s P/E Ratio of 15.36 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NBIS vs. PSO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Price-to-Sales Ratio (TTM)

NBIS

27.65

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 27.65, NBIS trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PSO

1.92

Diversified Consumer Services Industry

Max
3.13
Q3
2.94
Median
2.42
Q1
1.78
Min
1.07

PSO’s P/S Ratio of 1.92 aligns with the market consensus for the Diversified Consumer Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NBIS vs. PSO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Price-to-Book Ratio (MRQ)

NBIS

3.49

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

NBIS’s P/B Ratio of 3.49 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

PSO

1.95

Diversified Consumer Services Industry

Max
7.43
Q3
5.06
Median
3.19
Q1
1.95
Min
0.95

PSO’s P/B Ratio of 1.95 is within the conventional range for the Diversified Consumer Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NBIS vs. PSO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Valuation at a Glance

SymbolNBISPSO
Price-to-Earnings Ratio (TTM)132.2715.36
Price-to-Sales Ratio (TTM)27.651.92
Price-to-Book Ratio (MRQ)3.491.95
Price-to-Free Cash Flow Ratio (TTM)0.6711.00