PSO vs. TEF: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PSO and TEF, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both PSO and TEF are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | PSO | TEF |
|---|---|---|
| Company Name | Pearson plc | Telefónica, S.A. |
| Country | United Kingdom | Spain |
| GICS Sector | Consumer Discretionary | Communication Services |
| GICS Industry | Diversified Consumer Services | Diversified Telecommunication Services |
| Market Capitalization | 9.14 billion USD | 28.56 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 18, 1996 | June 12, 1987 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of PSO and TEF 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 | TEF |
|---|---|---|
| 5-Day Price Return | 0.81% | -0.69% |
| 13-Week Price Return | -0.93% | -5.12% |
| 26-Week Price Return | -12.97% | -2.35% |
| 52-Week Price Return | 3.72% | -2.09% |
| Month-to-Date Return | 0.33% | -1.91% |
| Year-to-Date Return | -17.32% | 9.58% |
| 10-Day Avg. Volume | 1.33M | 6.90M |
| 3-Month Avg. Volume | 1.44M | 7.61M |
| 3-Month Volatility | 19.56% | 15.41% |
| Beta | 0.40 | -0.20 |
Profitability
Return on Equity (TTM)
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.
TEF
-19.12%
Diversified Telecommunication Services Industry
- Max
- 34.76%
- Q3
- 16.39%
- Median
- 9.92%
- Q1
- 1.36%
- Min
- -10.54%
TEF has a negative Return on Equity of -19.12%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
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.
TEF
-7.64%
Diversified Telecommunication Services Industry
- Max
- 28.40%
- Q3
- 13.17%
- Median
- 7.18%
- Q1
- 1.75%
- Min
- -14.73%
TEF has a negative Net Profit Margin of -7.64%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
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.
TEF
8.91%
Diversified Telecommunication Services Industry
- Max
- 37.46%
- Q3
- 22.24%
- Median
- 14.86%
- Q1
- 9.46%
- Min
- -9.42%
TEF’s Operating Profit Margin of 8.91% is in the lower quartile for the Diversified Telecommunication Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | PSO | TEF |
|---|---|---|
| Return on Equity (TTM) | 11.56% | -19.12% |
| Return on Assets (TTM) | 6.72% | -3.73% |
| Net Profit Margin (TTM) | 12.53% | -7.64% |
| Operating Profit Margin (TTM) | 15.97% | 8.91% |
| Gross Profit Margin (TTM) | 51.45% | 66.46% |
Financial Strength
Current Ratio (MRQ)
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.
TEF
0.85
Diversified Telecommunication Services Industry
- Max
- 1.53
- Q3
- 1.09
- Median
- 0.91
- Q1
- 0.70
- Min
- 0.18
TEF’s Current Ratio of 0.85 aligns with the median group of the Diversified Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
TEF
2.59
Diversified Telecommunication Services Industry
- Max
- 3.82
- Q3
- 2.13
- Median
- 1.40
- Q1
- 0.71
- Min
- 0.00
TEF’s leverage is in the upper quartile of the Diversified Telecommunication Services industry, with a Debt-to-Equity Ratio of 2.59. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
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.
TEF
1.36
Diversified Telecommunication Services Industry
- Max
- 16.05
- Q3
- 8.06
- Median
- 3.53
- Q1
- 1.36
- Min
- -2.60
TEF’s Interest Coverage Ratio of 1.36 is positioned comfortably within the norm for the Diversified Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | PSO | TEF |
|---|---|---|
| Current Ratio (MRQ) | 2.31 | 0.85 |
| Quick Ratio (MRQ) | 2.24 | 0.75 |
| Debt-to-Equity Ratio (MRQ) | 0.41 | 2.59 |
| Interest Coverage Ratio (TTM) | 13.44 | 1.36 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
TEF
7.58%
Diversified Telecommunication Services Industry
- Max
- 10.69%
- Q3
- 5.66%
- Median
- 4.23%
- Q1
- 1.76%
- Min
- 0.00%
With a Dividend Yield of 7.58%, TEF offers a more attractive income stream than most of its peers in the Diversified Telecommunication Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
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.
TEF
110.52%
Diversified Telecommunication Services Industry
- Max
- 273.77%
- Q3
- 134.61%
- Median
- 76.89%
- Q1
- 41.79%
- Min
- 0.00%
TEF’s Dividend Payout Ratio of 110.52% is within the typical range for the Diversified Telecommunication Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | PSO | TEF |
|---|---|---|
| Dividend Yield (TTM) | 2.35% | 7.58% |
| Dividend Payout Ratio (TTM) | 36.05% | 110.52% |
Valuation
Price-to-Earnings Ratio (TTM)
PSO
15.37
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 15.37 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
TEF
--
Diversified Telecommunication Services Industry
- Max
- 42.43
- Q3
- 27.51
- Median
- 18.10
- Q1
- 13.52
- Min
- 4.10
P/E Ratio data for TEF is currently unavailable.
Price-to-Sales Ratio (TTM)
PSO
1.93
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 1.93 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.
TEF
0.51
Diversified Telecommunication Services Industry
- Max
- 4.55
- Q3
- 2.45
- Median
- 1.74
- Q1
- 0.98
- Min
- 0.36
In the lower quartile for the Diversified Telecommunication Services industry, TEF’s P/S Ratio of 0.51 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
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.
TEF
1.46
Diversified Telecommunication Services Industry
- Max
- 7.27
- Q3
- 3.97
- Median
- 2.45
- Q1
- 1.25
- Min
- 0.27
TEF’s P/B Ratio of 1.46 is within the conventional range for the Diversified Telecommunication 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.
Valuation at a Glance
| Symbol | PSO | TEF |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.37 | -- |
| Price-to-Sales Ratio (TTM) | 1.93 | 0.51 |
| Price-to-Book Ratio (MRQ) | 1.95 | 1.46 |
| Price-to-Free Cash Flow Ratio (TTM) | 11.00 | 4.35 |