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

Updated on August 28, 2025

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

Company Profile

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

Symbol	PSO	SPOT
Company Name	Pearson plc	Spotify Technology S.A.
Country	United Kingdom	Luxembourg
GICS Sector	Consumer Discretionary	Communication Services
GICS Industry	Diversified Consumer Services	Entertainment
Market Capitalization	9.54 billion USD	142.97 billion USD
Exchange	NYSE	NYSE
Listing Date	November 18, 1996	April 3, 2018
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of PSO and SPOT 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.

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

Historical Performance at a Glance

Symbol	PSO	SPOT
5-Day Price Return	2.71%	-3.41%
13-Week Price Return	-9.32%	9.12%
26-Week Price Return	-18.47%	8.10%
52-Week Price Return	5.62%	103.04%
Month-to-Date Return	2.47%	10.89%
Year-to-Date Return	-14.27%	55.30%
10-Day Avg. Volume	1.03M	1.54M
3-Month Avg. Volume	1.50M	2.19M
3-Month Volatility	23.05%	44.45%
Beta	0.33	1.69

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.

SPOT

14.00%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

SPOT’s Return on Equity of 14.00% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

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.

SPOT

4.85%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

Falling into the lower quartile for the Entertainment industry, SPOT’s Net Profit Margin of 4.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

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.

SPOT

11.11%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

SPOT’s Operating Profit Margin of 11.11% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	PSO	SPOT
Return on Equity (TTM)	11.56%	14.00%
Return on Assets (TTM)	6.72%	6.62%
Net Profit Margin (TTM)	12.53%	4.85%
Operating Profit Margin (TTM)	15.97%	11.11%
Gross Profit Margin (TTM)	51.45%	31.63%

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.

SPOT

1.47

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

SPOT’s Current Ratio of 1.47 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

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

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.

SPOT

0.36

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

SPOT’s Debt-to-Equity Ratio of 0.36 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

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.

SPOT

38.25

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

SPOT’s Interest Coverage Ratio of 38.25 is in the upper quartile for the Entertainment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

Symbol	PSO	SPOT
Current Ratio (MRQ)	2.31	1.47
Quick Ratio (MRQ)	2.24	1.46
Debt-to-Equity Ratio (MRQ)	0.41	0.36
Interest Coverage Ratio (TTM)	13.44	38.25

Growth

Revenue Growth

PSO vs. SPOT: 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

PSO vs. SPOT: 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)

PSO

2.29%

Diversified Consumer Services Industry

Max: 2.29%
Q3: 0.98%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.29%, 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.

SPOT

0.00%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

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

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.

SPOT

0.00%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

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

Dividend at a Glance

Symbol	PSO	SPOT
Dividend Yield (TTM)	2.29%	0.00%
Dividend Payout Ratio (TTM)	36.05%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

PSO

15.73

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 15.73 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.

SPOT

151.28

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

At 151.28, SPOT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Entertainment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

PSO

1.97

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 1.97 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.

SPOT

7.34

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

SPOT’s P/S Ratio of 7.34 is in the upper echelon for the Entertainment 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.

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

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.

SPOT

20.34

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

At 20.34, SPOT’s P/B Ratio is at an extreme premium to the Entertainment 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.

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

Valuation at a Glance

Symbol	PSO	SPOT
Price-to-Earnings Ratio (TTM)	15.73	151.28
Price-to-Sales Ratio (TTM)	1.97	7.34
Price-to-Book Ratio (MRQ)	1.95	20.34
Price-to-Free Cash Flow Ratio (TTM)	11.26	43.24