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PSO vs. YUMC: Pearson vs. Yum China Stock Comparison

How do Pearson (PSO) and Yum China (YUMC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Pearson (PSO) and Yum China (YUMC) both fall under the Consumer Services industry group, but PSO is classified in Diversified Consumer Services while YUMC is classified in Hotels, Restaurants & Leisure.

Yum China (YUMC) trades as ordinary local shares, while Pearson (PSO) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Pearson (PSO) and Yum China (YUMC)
Profile ItemPSOYUMC
NamePearson plc Sponsored ADRYum China Holdings, Inc.
Country/RegionUnited KingdomChina
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesConsumer Services
GICS IndustryDiversified Consumer ServicesHotels, Restaurants & Leisure
GICS Sub-IndustryEducation ServicesRestaurants
Market Capitalization10.38 billion USD16.79 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateNovember 18, 1996October 17, 2016
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

PSO
YUMC
GSPC
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Pearson (PSO) vs. Yum China (YUMC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Pearson (PSO) and Yum China (YUMC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Pearson (PSO) and Yum China (YUMC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Total Return (1Y)34.42%17.02%
Total Return (3Y, Annualized)15.38%6.80%
Total Return (5Y, Annualized)17.99%-0.60%

Risk Profile

Drawdown History

PSO
YUMC
GSPC
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Pearson (PSO) vs. Yum China (YUMC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Pearson (PSO) and Yum China (YUMC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Volatility (1Y, Annualized)25.07%25.40%
Beta (5Y)0.430.01
Max Drawdown (5Y)-30.73%-53.84%
Avg. Volume (3M)698.84K1.59M

Risk-Adjusted Performance

Risk-Return Positioning

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PSO and YUMC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Sharpe Ratio (1Y)1.200.50
Sortino Ratio (1Y)1.670.77

Profitability

ROE (TTM)

Both Pearson (PSO) at 9.16% and Yum China (YUMC) at 17.35% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

PSO

Consumer Services industry group

9.16%

Max
76.75%
Q3
34.07%
Median
15.90%
PSO
9.16%
Q1
3.23%
Min
-40.61%

YUMC

Consumer Services industry group

17.35%

Max
76.75%
Q3
34.07%
YUMC
17.35%
Median
15.90%
Q1
3.23%
Min
-40.61%
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their ROE against the Consumer Services industry group benchmark.

Net Margin (TTM)

Both Pearson (PSO) at 8.78% and Yum China (YUMC) at 7.90% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

PSO

Consumer Services industry group

8.78%

Max
25.52%
Q3
12.95%
PSO
8.78%
Median
6.63%
Q1
1.46%
Min
-14.36%

YUMC

Consumer Services industry group

7.90%

Max
25.52%
Q3
12.95%
YUMC
7.90%
Median
6.63%
Q1
1.46%
Min
-14.36%
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

Both Pearson (PSO) at 13.32% and Yum China (YUMC) at 13.09% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

PSO

Consumer Services industry group

13.32%

Max
49.05%
Q3
24.35%
Median
14.23%
PSO
13.32%
Q1
5.67%
Min
-16.47%

YUMC

Consumer Services industry group

13.09%

Max
49.05%
Q3
24.35%
Median
14.23%
YUMC
13.09%
Q1
5.67%
Min
-16.47%
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
ROE (TTM)9.16%17.35%
ROA (TTM)5.09%7.81%
Net Margin (TTM)8.78%7.90%
Operating Margin (TTM)13.32%13.09%
Gross Margin (TTM)52.04%20.45%

Growth

Revenue Growth

Yum China (YUMC) at 4.37% is around its peer norm for revenue growth, while Pearson (PSO) at 0.70% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Pearson (PSO) vs. Yum China (YUMC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Pearson (PSO) at -20.16% and Yum China (YUMC) at 7.73% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Pearson (PSO) vs. Yum China (YUMC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Revenue Growth (YoY)0.70%4.37%
Revenue Growth (3Y CAGR)-2.35%7.23%
EPS Growth (YoY)-20.16%7.73%
EPS Growth (3Y CAGR)15.86%34.14%

Financial Strength

Current Ratio (MRQ)

Pearson (PSO) at 2.00 carries current ratio above its industry’s typical mid-range, while Yum China (YUMC) at 0.67 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

PSO

Consumer Services industry group

2.00

Max
3.41
PSO
2.00
Q3
1.85
Median
1.06
Q1
0.72
Min
0.22

YUMC

Consumer Services industry group

0.67

Max
3.41
Q3
1.85
Median
1.06
Q1
0.72
YUMC
0.67
Min
0.22
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their current ratio against the Consumer Services industry group benchmark.

Debt / Equity (MRQ)

Both Pearson (PSO) at 0.52 and Yum China (YUMC) at 0.54 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

PSO

Consumer Services industry group

0.52

Max
6.12
Q3
2.93
Median
1.29
PSO
0.52
Q1
0.37
Min
0.01

YUMC

Consumer Services industry group

0.54

Max
6.12
Q3
2.93
Median
1.29
YUMC
0.54
Q1
0.37
Min
0.01
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their debt-to-equity ratio against the Consumer Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Current Ratio (MRQ)2.000.67
Debt / Equity (MRQ)0.520.54
Net Debt / EBITDA2.350.85

Dividends

Dividend Yield (TTM)

Yum China (YUMC) at 2.23% delivers top-quartile income for its industry, while Pearson (PSO) at 1.46% pays a more typical yield — both are credible income propositions, YUMC the richer one.

PSO

Consumer Services industry group

1.46%

Max
4.10%
Q3
1.82%
PSO
1.46%
Median
0.00%
Q1
0.00%
Min
0.00%

YUMC

Consumer Services industry group

2.23%

Max
4.10%
YUMC
2.23%
Q3
1.82%
Median
0.00%
Q1
0.00%
Min
0.00%
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Pearson (PSO) at 51.09% and Yum China (YUMC) at 38.54% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

PSO

Consumer Services industry group

51.09%

Max
89.80%
PSO
51.09%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%

YUMC

Consumer Services industry group

38.54%

Max
89.80%
YUMC
38.54%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
Dividend Yield (TTM)1.46%2.23%
Dividend Payout Ratio (TTM)51.09%38.54%

Valuation

P/E Ratio (TTM)

Both Pearson (PSO) at 25.78 and Yum China (YUMC) at 17.34 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

PSO

Consumer Services industry group

25.78

Max
71.70
Q3
37.12
PSO
25.78
Median
21.88
Q1
13.00
Min
5.72

YUMC

Consumer Services industry group

17.34

Max
71.70
Q3
37.12
Median
21.88
YUMC
17.34
Q1
13.00
Min
5.72
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Pearson (PSO) at 2.86 and Yum China (YUMC) at 1.32 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

PSO

Consumer Services industry group

2.86

Max
6.40
Q3
3.01
PSO
2.86
Median
1.54
Q1
0.74
Min
0.08

YUMC

Consumer Services industry group

1.32

Max
6.40
Q3
3.01
Median
1.54
YUMC
1.32
Q1
0.74
Min
0.08
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Pearson (PSO) at 2.38 and Yum China (YUMC) at 3.19 are valued close to their industries’ norm against book — neither stands out from peers.

PSO

Consumer Services industry group

2.38

Max
12.02
Q3
5.58
PSO
2.38
Median
2.37
Q1
1.09
Min
-4.51

YUMC

Consumer Services industry group

3.19

Max
12.02
Q3
5.58
YUMC
3.19
Median
2.37
Q1
1.09
Min
-4.51
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Pearson (PSO) vs. Yum China (YUMC): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for Pearson (PSO) and Yum China (YUMC)
MetricPSOYUMC
P/E Ratio (TTM)25.7817.34
P/S Ratio (TTM)2.861.32
P/B Ratio (MRQ)2.383.19
Free Cash Flow Yield (TTM)8.08%-2.30%