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

Updated on August 27, 2025

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

Symbol	PSO	WMG
Company Name	Pearson plc	Warner Music Group Corp.
Country	United Kingdom	United States
GICS Sector	Consumer Discretionary	Communication Services
GICS Industry	Diversified Consumer Services	Entertainment
Market Capitalization	9.54 billion USD	17.76 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	November 18, 1996	June 3, 2020
Security Type	ADR	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	PSO	WMG
5-Day Price Return	2.71%	5.02%
13-Week Price Return	-9.32%	30.69%
26-Week Price Return	-18.47%	-3.92%
52-Week Price Return	5.62%	17.73%
Month-to-Date Return	2.47%	16.44%
Year-to-Date Return	-14.27%	9.90%
10-Day Avg. Volume	1.03M	2.34M
3-Month Avg. Volume	1.50M	1.81M
3-Month Volatility	23.05%	23.92%
Beta	0.33	1.31

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.

WMG

53.54%

Entertainment Industry

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

WMG’s Return on Equity of 53.54% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

PSO vs. WMG: 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.

WMG

4.59%

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, WMG’s Net Profit Margin of 4.59% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

PSO vs. WMG: 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.

WMG

10.73%

Entertainment Industry

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

WMG’s Operating Profit Margin of 10.73% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	PSO	WMG
Return on Equity (TTM)	11.56%	53.54%
Return on Assets (TTM)	6.72%	3.16%
Net Profit Margin (TTM)	12.53%	4.59%
Operating Profit Margin (TTM)	15.97%	10.73%
Gross Profit Margin (TTM)	51.45%	46.64%

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.

WMG

0.66

Entertainment Industry

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

WMG’s Current Ratio of 0.66 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

PSO vs. WMG: 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.

WMG

7.41

Entertainment Industry

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

With a Debt-to-Equity Ratio of 7.41, WMG operates with exceptionally high leverage compared to the Entertainment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

PSO vs. WMG: 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.

WMG

4.73

Entertainment Industry

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

WMG’s Interest Coverage Ratio of 4.73 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.

PSO vs. WMG: 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	WMG
Current Ratio (MRQ)	2.31	0.66
Quick Ratio (MRQ)	2.24	0.45
Debt-to-Equity Ratio (MRQ)	0.41	7.41
Interest Coverage Ratio (TTM)	13.44	4.73

Growth

Revenue Growth

PSO vs. WMG: 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. WMG: 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.

WMG

2.42%

Entertainment Industry

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

With a Dividend Yield of 2.42%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

PSO vs. WMG: 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.

WMG

82.30%

Entertainment Industry

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

WMG’s Dividend Payout Ratio of 82.30% is in the upper quartile for the Entertainment 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.

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

Dividend at a Glance

Symbol	PSO	WMG
Dividend Yield (TTM)	2.29%	2.42%
Dividend Payout Ratio (TTM)	36.05%	82.30%

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.

WMG

52.44

Entertainment Industry

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

A P/E Ratio of 52.44 places WMG in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

PSO vs. WMG: 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.

WMG

2.41

Entertainment Industry

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

In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.41 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.

PSO vs. WMG: 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.

WMG

24.11

Entertainment Industry

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

At 24.11, WMG’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. WMG: 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	WMG
Price-to-Earnings Ratio (TTM)	15.73	52.44
Price-to-Sales Ratio (TTM)	1.97	2.41
Price-to-Book Ratio (MRQ)	1.95	24.11
Price-to-Free Cash Flow Ratio (TTM)	11.26	26.81