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PSO vs. DIS: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Media Conglomerates sector have probably already heard of Pearson (PSO - Free Report) and Walt Disney (DIS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Pearson has a Zacks Rank of #2 (Buy), while Walt Disney has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSO currently has a forward P/E ratio of 14.58, while DIS has a forward P/E of 22.86. We also note that PSO has a PEG ratio of 1.73. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DIS currently has a PEG ratio of 1.85.
Another notable valuation metric for PSO is its P/B ratio of 1.61. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DIS has a P/B of 1.70.
Based on these metrics and many more, PSO holds a Value grade of B, while DIS has a Value grade of C.
PSO stands above DIS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSO is the superior value option right now.
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PSO vs. DIS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Media Conglomerates sector have probably already heard of Pearson (PSO - Free Report) and Walt Disney (DIS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Pearson has a Zacks Rank of #2 (Buy), while Walt Disney has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PSO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PSO currently has a forward P/E ratio of 14.58, while DIS has a forward P/E of 22.86. We also note that PSO has a PEG ratio of 1.73. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DIS currently has a PEG ratio of 1.85.
Another notable valuation metric for PSO is its P/B ratio of 1.61. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DIS has a P/B of 1.70.
Based on these metrics and many more, PSO holds a Value grade of B, while DIS has a Value grade of C.
PSO stands above DIS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PSO is the superior value option right now.