Head to Head Contrast: BuzzFeed (NASDAQ:BZFD) vs. Pearson (NYSE:PSO)

BuzzFeed (NASDAQ:BZFD) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares BuzzFeed and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BuzzFeed	-31.16%	-67.42%	-27.72%
Pearson	N/A	N/A	N/A

Earnings & Valuation

This table compares BuzzFeed and Pearson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BuzzFeed	$185.27 million	0.14	-$57.72 million	($1.53)	-0.46
Pearson	$4.72 billion	1.78	$441.77 million	N/A	N/A

Pearson has higher revenue and earnings than BuzzFeed.

Volatility and Risk

BuzzFeed has a beta of 3.43, suggesting that its share price is 243% more volatile than the S&P 500. Comparatively, Pearson has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 2.1% of Pearson shares are owned by institutional investors. 20.3% of BuzzFeed shares are owned by insiders. Comparatively, 0.1% of Pearson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BuzzFeed and Pearson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BuzzFeed	1	1	0	0	1.50
Pearson	0	4	2	1	2.57

BuzzFeed currently has a consensus price target of $1.00, suggesting a potential upside of 41.84%. Given BuzzFeed’s higher probable upside, equities analysts plainly believe BuzzFeed is more favorable than Pearson.

Summary

Pearson beats BuzzFeed on 9 of the 13 factors compared between the two stocks.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

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, Workforce Skills, and Higher Education. 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 Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.