PSO vs. RELX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PSO and RELX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both PSO and RELX are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | PSO | RELX |
|---|---|---|
| Company Name | Pearson plc | RELX PLC |
| Country | United Kingdom | United Kingdom |
| GICS Sector | Consumer Discretionary | Industrials |
| GICS Industry | Diversified Consumer Services | Professional Services |
| Market Capitalization | 9.45 billion USD | 87.35 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 18, 1996 | October 6, 1994 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of PSO and RELX 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.
Historical Performance at a Glance
| Symbol | PSO | RELX |
|---|---|---|
| 5-Day Price Return | -1.75% | -3.07% |
| 13-Week Price Return | -9.83% | -10.51% |
| 26-Week Price Return | -19.45% | -12.59% |
| 52-Week Price Return | 2.85% | -0.45% |
| Month-to-Date Return | -0.75% | -10.21% |
| Year-to-Date Return | -16.97% | -2.62% |
| 10-Day Avg. Volume | 1.80M | 2.33M |
| 3-Month Avg. Volume | 1.65M | 2.65M |
| 3-Month Volatility | 23.14% | 17.07% |
| Beta | 0.29 | 0.71 |
Profitability
Return on Equity (TTM)
PSO
11.56%
Diversified Consumer Services Industry
- Max
- 32.65%
- Q3
- 29.77%
- Median
- 16.63%
- Q1
- 11.08%
- Min
- 2.26%
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.
RELX
68.01%
Professional Services Industry
- Max
- 52.17%
- Q3
- 30.06%
- Median
- 22.21%
- Q1
- 11.67%
- Min
- -13.44%
RELX’s Return on Equity of 68.01% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
PSO
12.53%
Diversified Consumer Services Industry
- Max
- 18.84%
- Q3
- 13.34%
- Median
- 12.22%
- Q1
- 7.92%
- Min
- 3.76%
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.
RELX
20.19%
Professional Services Industry
- Max
- 26.06%
- Q3
- 13.34%
- Median
- 7.88%
- Q1
- 3.50%
- Min
- -2.93%
A Net Profit Margin of 20.19% places RELX in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
PSO
15.97%
Diversified Consumer Services Industry
- Max
- 26.63%
- Q3
- 19.23%
- Median
- 15.23%
- Q1
- 8.71%
- Min
- -0.71%
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.
RELX
30.62%
Professional Services Industry
- Max
- 35.84%
- Q3
- 19.38%
- Median
- 12.54%
- Q1
- 7.36%
- Min
- -5.21%
An Operating Profit Margin of 30.62% places RELX in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | PSO | RELX |
|---|---|---|
| Return on Equity (TTM) | 11.56% | 68.01% |
| Return on Assets (TTM) | 6.72% | 13.07% |
| Net Profit Margin (TTM) | 12.53% | 20.19% |
| Operating Profit Margin (TTM) | 15.97% | 30.62% |
| Gross Profit Margin (TTM) | 51.45% | 65.48% |
Financial Strength
Current Ratio (MRQ)
PSO
2.31
Diversified Consumer Services Industry
- Max
- 3.40
- Q3
- 1.97
- Median
- 1.66
- Q1
- 0.60
- Min
- 0.15
PSO’s Current Ratio of 2.31 is in the upper quartile for the Diversified Consumer Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
RELX
0.47
Professional Services Industry
- Max
- 2.45
- Q3
- 1.65
- Median
- 1.26
- Q1
- 1.10
- Min
- 0.47
RELX’s Current Ratio of 0.47 falls into the lower quartile for the Professional Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
PSO
0.41
Diversified Consumer Services Industry
- Max
- 2.92
- Q3
- 1.22
- Median
- 0.36
- Q1
- 0.01
- 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.
RELX
3.46
Professional Services Industry
- Max
- 2.63
- Q3
- 1.44
- Median
- 0.91
- Q1
- 0.49
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.46, RELX operates with exceptionally high leverage compared to the Professional Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
PSO
13.44
Diversified Consumer Services Industry
- Max
- 13.44
- Q3
- 10.58
- Median
- 5.57
- Q1
- 3.04
- Min
- -2.17
PSO’s Interest Coverage Ratio of 13.44 is in the upper quartile for the Diversified Consumer Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
RELX
11.07
Professional Services Industry
- Max
- 39.67
- Q3
- 20.05
- Median
- 11.07
- Q1
- 5.36
- Min
- -2.22
RELX’s Interest Coverage Ratio of 11.07 is positioned comfortably within the norm for the Professional Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | PSO | RELX |
|---|---|---|
| Current Ratio (MRQ) | 2.31 | 0.47 |
| Quick Ratio (MRQ) | 2.24 | 0.42 |
| Debt-to-Equity Ratio (MRQ) | 0.41 | 3.46 |
| Interest Coverage Ratio (TTM) | 13.44 | 11.07 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
PSO
2.33%
Diversified Consumer Services Industry
- Max
- 2.29%
- Q3
- 0.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PSO’s Dividend Yield of 2.33% is exceptionally high, placing it well above the typical range for the Diversified Consumer Services industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
RELX
1.80%
Professional Services Industry
- Max
- 5.28%
- Q3
- 2.51%
- Median
- 1.63%
- Q1
- 0.62%
- Min
- 0.00%
RELX’s Dividend Yield of 1.80% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
PSO
36.05%
Diversified Consumer Services Industry
- Max
- 35.94%
- Q3
- 25.79%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 36.05%, PSO’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Diversified Consumer Services industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
RELX
60.42%
Professional Services Industry
- Max
- 109.23%
- Q3
- 64.39%
- Median
- 47.00%
- Q1
- 20.35%
- Min
- 0.00%
RELX’s Dividend Payout Ratio of 60.42% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | PSO | RELX |
|---|---|---|
| Dividend Yield (TTM) | 2.33% | 1.80% |
| Dividend Payout Ratio (TTM) | 36.05% | 60.42% |
Valuation
Price-to-Earnings Ratio (TTM)
PSO
15.46
Diversified Consumer Services Industry
- Max
- 33.95
- Q3
- 25.14
- Median
- 19.27
- Q1
- 15.30
- Min
- 5.58
PSO’s P/E Ratio of 15.46 is within the middle range for the Diversified Consumer Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
RELX
33.57
Professional Services Industry
- Max
- 49.59
- Q3
- 36.59
- Median
- 28.13
- Q1
- 18.55
- Min
- 10.07
RELX’s P/E Ratio of 33.57 is within the middle range for the Professional Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
PSO
1.94
Diversified Consumer Services Industry
- Max
- 3.29
- Q3
- 2.54
- Median
- 2.27
- Q1
- 1.92
- Min
- 1.28
PSO’s P/S Ratio of 1.94 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.
RELX
6.78
Professional Services Industry
- Max
- 9.54
- Q3
- 5.11
- Median
- 2.10
- Q1
- 0.75
- Min
- 0.11
RELX’s P/S Ratio of 6.78 is in the upper echelon for the Professional Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
PSO
1.95
Diversified Consumer Services Industry
- Max
- 7.00
- Q3
- 6.37
- Median
- 3.31
- Q1
- 2.13
- Min
- 0.98
PSO’s P/B Ratio of 1.95 is in the lower quartile for the Diversified Consumer Services 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.
RELX
33.17
Professional Services Industry
- Max
- 13.75
- Q3
- 8.87
- Median
- 4.35
- Q1
- 2.43
- Min
- 0.54
At 33.17, RELX’s P/B Ratio is at an extreme premium to the Professional Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | PSO | RELX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.46 | 33.57 |
| Price-to-Sales Ratio (TTM) | 1.94 | 6.78 |
| Price-to-Book Ratio (MRQ) | 1.95 | 33.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 11.07 | 28.63 |