PSO vs. TWLO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PSO and TWLO, 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, TWLO is a standard domestic listing.
| Symbol | PSO | TWLO |
|---|---|---|
| Company Name | Pearson plc | Twilio Inc. |
| Country | United Kingdom | United States |
| GICS Sector | Consumer Discretionary | Information Technology |
| GICS Industry | Diversified Consumer Services | IT Services |
| Market Capitalization | 9.53 billion USD | 15.64 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 18, 1996 | June 23, 2016 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of PSO and TWLO 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 | TWLO |
|---|---|---|
| 5-Day Price Return | 1.78% | 1.09% |
| 13-Week Price Return | -10.78% | -12.23% |
| 26-Week Price Return | -19.25% | -30.78% |
| 52-Week Price Return | 4.28% | 64.74% |
| Month-to-Date Return | 1.12% | -20.98% |
| Year-to-Date Return | -15.41% | -5.68% |
| 10-Day Avg. Volume | 1.30M | 9.30M |
| 3-Month Avg. Volume | 1.53M | 3.23M |
| 3-Month Volatility | 23.06% | 58.01% |
| Beta | 0.29 | 1.29 |
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.
TWLO
0.25%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
TWLO’s Return on Equity of 0.25% is in the lower quartile for the IT Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
TWLO
0.43%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
Falling into the lower quartile for the IT Services industry, TWLO’s Net Profit Margin of 0.43% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
TWLO
1.30%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
TWLO’s Operating Profit Margin of 1.30% is in the lower quartile for the IT 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 | TWLO |
|---|---|---|
| Return on Equity (TTM) | 11.56% | 0.25% |
| Return on Assets (TTM) | 6.72% | 0.20% |
| Net Profit Margin (TTM) | 12.53% | 0.43% |
| Operating Profit Margin (TTM) | 15.97% | 1.30% |
| Gross Profit Margin (TTM) | 51.45% | 49.96% |
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.
TWLO
4.90
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
TWLO’s Current Ratio of 4.90 is exceptionally high, placing it well outside the typical range for the IT Services 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.
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.
TWLO
0.12
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, TWLO’s Debt-to-Equity Ratio of 0.12 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
TWLO
-3.85
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
TWLO has a negative Interest Coverage Ratio of -3.85. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | PSO | TWLO |
|---|---|---|
| Current Ratio (MRQ) | 2.31 | 4.90 |
| Quick Ratio (MRQ) | 2.24 | 4.54 |
| Debt-to-Equity Ratio (MRQ) | 0.41 | 0.12 |
| Interest Coverage Ratio (TTM) | 13.44 | -3.85 |
Growth
Revenue Growth
EPS Growth
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.
TWLO
0.00%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
TWLO 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.
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.
TWLO
0.00%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- Q1
- 0.00%
- Min
- 0.00%
TWLO 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.
Dividend at a Glance
| Symbol | PSO | TWLO |
|---|---|---|
| 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.
TWLO
768.57
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
At 768.57, TWLO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
TWLO
3.29
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
TWLO’s P/S Ratio of 3.29 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
TWLO
2.36
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
TWLO’s P/B Ratio of 2.36 is within the conventional range for the IT 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 | TWLO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.73 | 768.57 |
| Price-to-Sales Ratio (TTM) | 1.97 | 3.29 |
| Price-to-Book Ratio (MRQ) | 1.95 | 2.36 |
| Price-to-Free Cash Flow Ratio (TTM) | 11.26 | 21.48 |