Informa (OTCMKTS:IFJPY – Get Free Report) and Pearson (NYSE:PSO – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Dividends
Informa pays an annual dividend of $0.35 per share and has a dividend yield of 1.8%. Pearson pays an annual dividend of $0.38 per share and has a dividend yield of 3.5%. Informa pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pearson has raised its dividend for 1 consecutive years. Pearson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Informa and Pearson’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Informa | N/A | N/A | N/A | $0.43 | 45.31 |
| Pearson | $4.75 billion | 1.65 | $299.33 million | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Informa and Pearson, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Informa | 0 | 2 | 0 | 1 | 2.67 |
| Pearson | 0 | 1 | 4 | 0 | 2.80 |
Informa currently has a consensus target price of $797.00, indicating a potential upside of 4,027.40%. Pearson has a consensus target price of $1,012.86, indicating a potential upside of 9,141.40%. Given Pearson’s stronger consensus rating and higher probable upside, analysts plainly believe Pearson is more favorable than Informa.
Insider and Institutional Ownership
0.0% of Informa shares are owned by institutional investors. Comparatively, 2.4% of Pearson shares are owned by institutional investors. 0.1% of Pearson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Informa and Pearson’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Informa | N/A | N/A | N/A |
| Pearson | N/A | N/A | N/A |
Summary
Pearson beats Informa on 9 of the 10 factors compared between the two stocks.
About Informa
Informa plc operates as an international events, digital services, and academic knowledge company in the United Kingdom, Continental Europe, North America, China, and internationally. It operates through four segments: Informa Markets, Informa Tech, Informa Connect, and Taylor & Francis. The Informa Connect segment delivers specialist content, and live events and on-demand experiences for professionals through in-person, live, and digital platforms and services that enables businesses and professionals to meet, network, discuss, and learn. This segment operates events in the finance, biotech and pharma, and other specialist markets, including food and hospitality, marketing, and pop culture. The Informa Markets segment enable buyers, sellers, and decision makers to meet, discover, and showcase new products in various specialist markets. Its brands deliver smart events, including must-attend trade-focused exhibitions, specialist content, specialist data, and targeted digital services comprising lead and demand generation solutions. The Informa Tech segment offers specialist content, research and media, and market access through live and online industry events and communities, audience development, and digital demand generation services. It serves cybersecurity, enterprise technology, media and entertainment, artificial intelligence and the internet of things, and channels markets. The Taylor & Francis segment curates and publishes applied academic research and knowledge focusing on science, technology, medicine, and humanities and social sciences in pay-to-publish and pay-to-read formats, open research, and advanced learning. The company was formerly known as T&F Informa plc and changed its name to Informa plc in August 2005. Informa plc was founded in 1998 and is headquartered in London, the United Kingdom.
About Pearson
Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The company was founded in 1844 and is headquartered in London, the United Kingdom.
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