McClatchy Company (The) (NYSE: MNI) and Pearson, PLC (NYSE:PSO) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitabiliy, dividends and risk.
Analyst Ratings
This is a summary of current recommendations and price targets for McClatchy Company (The) and Pearson, PLC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McClatchy Company (The) | 0 | 1 | 0 | 0 | 2.00 |
| Pearson, PLC | 5 | 4 | 2 | 0 | 1.73 |
Earnings and Valuation
This table compares McClatchy Company (The) and Pearson, PLC’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| McClatchy Company (The) | $943.21 million | 0.04 | $137.64 million | ($18.41) | -0.35 |
| Pearson, PLC | $6.25 billion | 1.05 | $1.09 billion | N/A | N/A |
Pearson, PLC has higher revenue and earnings than McClatchy Company (The).
Risk & Volatility
McClatchy Company (The) has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Pearson, PLC has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Profitability
This table compares McClatchy Company (The) and Pearson, PLC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| McClatchy Company (The) | -14.81% | -13.89% | -0.55% |
| Pearson, PLC | N/A | N/A | N/A |
Insider and Institutional Ownership
39.0% of McClatchy Company (The) shares are owned by institutional investors. Comparatively, 2.0% of Pearson, PLC shares are owned by institutional investors. 34.9% of McClatchy Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Pearson, PLC pays an annual dividend of $0.67 per share and has a dividend yield of 8.4%. McClatchy Company (The) does not pay a dividend.
Summary
Pearson, PLC beats McClatchy Company (The) on 8 of the 12 factors compared between the two stocks.
About McClatchy Company (The)
The McClatchy Company is a news and information publisher of various publications, such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. The Company’s segments include Western Segment and Eastern Segment. Its Western Segment consists of its newspaper operations in California, the Northwest and the Midwest. The Company’s Eastern Segment consists primarily of newspaper operations in the Southeast and Florida. The Company operates 30 media companies in 29 United States markets in 14 states, providing each of these communities with news and advertising services in a range of digital and print formats. The Company’s operations include approximately 30 local media businesses United States that consist of daily newspapers, Websites and mobile applications, publications, direct marketing, direct mail services and community newspapers.
About Pearson, PLC
Pearson plc (Pearson) is a learning company. The Company delivers learning through providing a range of educational products and services to institutions, governments, professional bodies and individual learners. The Company operates through three segments, which include North America, Core and Growth. The Company’s North America segment includes Courseware, Assessments and Services businesses in the United States and Canada. The Company’s Core segment includes Courseware, Assessments and Services businesses in more mature markets including the United Kingdom, Australia and Italy. The Company’s Growth segment includes Courseware, Assessments and Services businesses in emerging markets including Brazil, China, India and South Africa. The Company provides content, assessment and digital services to schools, colleges and universities, as well as professional and vocational education to learners to help increase their skills and employability prospects.
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