Seek Returns logo

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

Updated on

Here’s a clear look at PSO and VZ, 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, VZ is a standard domestic listing.

SymbolPSOVZ
Company NamePearson plcVerizon Communications Inc.
CountryUnited KingdomUnited States
GICS SectorConsumer DiscretionaryCommunication Services
GICS IndustryDiversified Consumer ServicesDiversified Telecommunication Services
Market Capitalization9.10 billion USD174.22 billion USD
ExchangeNYSENYSE
Listing DateNovember 18, 1996November 21, 1983
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of PSO and VZ 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. VZ: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolPSOVZ
5-Day Price Return-0.33%-4.79%
13-Week Price Return-1.08%-3.03%
26-Week Price Return-13.42%-9.43%
52-Week Price Return2.53%-5.75%
Month-to-Date Return-0.43%-5.98%
Year-to-Date Return-17.94%3.33%
10-Day Avg. Volume1.16M27.68M
3-Month Avg. Volume1.39M18.87M
3-Month Volatility19.56%18.36%
Beta0.410.34

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.

VZ

18.22%

Diversified Telecommunication Services Industry

Max
34.76%
Q3
16.39%
Median
9.92%
Q1
1.36%
Min
-10.54%

In the upper quartile for the Diversified Telecommunication Services industry, VZ’s Return on Equity of 18.22% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

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.

VZ

13.28%

Diversified Telecommunication Services Industry

Max
28.40%
Q3
13.17%
Median
7.18%
Q1
1.75%
Min
-14.73%

A Net Profit Margin of 13.28% places VZ in the upper quartile for the Diversified Telecommunication Services industry, signifying strong profitability and more effective cost management than most of its peers.

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

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.

VZ

22.22%

Diversified Telecommunication Services Industry

Max
37.46%
Q3
22.24%
Median
14.86%
Q1
9.46%
Min
-9.42%

VZ’s Operating Profit Margin of 22.22% is around the midpoint for the Diversified Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolPSOVZ
Return on Equity (TTM)11.56%18.22%
Return on Assets (TTM)6.72%4.76%
Net Profit Margin (TTM)12.53%13.28%
Operating Profit Margin (TTM)15.97%22.22%
Gross Profit Margin (TTM)51.45%59.48%

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.

VZ

0.64

Diversified Telecommunication Services Industry

Max
1.53
Q3
1.09
Median
0.91
Q1
0.70
Min
0.18

VZ’s Current Ratio of 0.64 falls into the lower quartile for the Diversified Telecommunication Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

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.

VZ

1.42

Diversified Telecommunication Services Industry

Max
3.82
Q3
2.13
Median
1.40
Q1
0.71
Min
0.00

VZ’s Debt-to-Equity Ratio of 1.42 is typical for the Diversified Telecommunication Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

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.

VZ

4.61

Diversified Telecommunication Services Industry

Max
16.05
Q3
8.06
Median
3.53
Q1
1.36
Min
-2.60

VZ’s Interest Coverage Ratio of 4.61 is positioned comfortably within the norm for the Diversified Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolPSOVZ
Current Ratio (MRQ)2.310.64
Quick Ratio (MRQ)2.240.49
Debt-to-Equity Ratio (MRQ)0.411.42
Interest Coverage Ratio (TTM)13.444.61

Growth

Revenue Growth

PSO vs. VZ: 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. VZ: 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

2.37%

Diversified Consumer Services Industry

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

With a Dividend Yield of 2.37%, 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.

VZ

6.51%

Diversified Telecommunication Services Industry

Max
10.69%
Q3
5.66%
Median
4.23%
Q1
1.76%
Min
0.00%

With a Dividend Yield of 6.51%, VZ offers a more attractive income stream than most of its peers in the Diversified Telecommunication Services industry, signaling a strong commitment to shareholder returns.

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

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.

VZ

62.46%

Diversified Telecommunication Services Industry

Max
273.77%
Q3
134.61%
Median
76.89%
Q1
41.79%
Min
0.00%

VZ’s Dividend Payout Ratio of 62.46% is within the typical range for the Diversified Telecommunication Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolPSOVZ
Dividend Yield (TTM)2.37%6.51%
Dividend Payout Ratio (TTM)36.05%62.46%

Valuation

Price-to-Earnings Ratio (TTM)

PSO

15.24

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 15.24 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

VZ

9.59

Diversified Telecommunication Services Industry

Max
42.43
Q3
27.51
Median
18.10
Q1
13.52
Min
4.10

In the lower quartile for the Diversified Telecommunication Services industry, VZ’s P/E Ratio of 9.59 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

PSO

1.91

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 1.91 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.

VZ

1.27

Diversified Telecommunication Services Industry

Max
4.55
Q3
2.45
Median
1.74
Q1
0.98
Min
0.36

VZ’s P/S Ratio of 1.27 aligns with the market consensus for the Diversified Telecommunication Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

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.

VZ

1.77

Diversified Telecommunication Services Industry

Max
7.27
Q3
3.97
Median
2.45
Q1
1.25
Min
0.27

VZ’s P/B Ratio of 1.77 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.

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

Valuation at a Glance

SymbolPSOVZ
Price-to-Earnings Ratio (TTM)15.249.59
Price-to-Sales Ratio (TTM)1.911.27
Price-to-Book Ratio (MRQ)1.951.77
Price-to-Free Cash Flow Ratio (TTM)10.918.90