Reviewing Reservoir Media (NASDAQ:RSVR) and Pearson (NYSE:PSO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reservoir Media	5.78%	2.62%	1.11%
Pearson	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Reservoir Media and Pearson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reservoir Media	0	2	1	0	2.33
Pearson	0	2	2	1	2.80

Reservoir Media presently has a consensus price target of $11.50, suggesting a potential upside of 55.83%. Pearson has a consensus price target of $18.00, suggesting a potential upside of 26.98%. Given Reservoir Media’s higher probable upside, research analysts clearly believe Reservoir Media is more favorable than Pearson.

Risk & Volatility

Reservoir Media has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

44.4% of Reservoir Media shares are held by institutional investors. Comparatively, 2.1% of Pearson shares are held by institutional investors. 27.0% of Reservoir Media shares are held by company insiders. Comparatively, 0.1% of Pearson shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Reservoir Media and Pearson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reservoir Media	$158.71 million	3.05	$7.75 million	$0.14	52.71
Pearson	$4.54 billion	1.99	$554.61 million	N/A	N/A

Pearson has higher revenue and earnings than Reservoir Media.

Summary

Reservoir Media beats Pearson on 8 of the 13 factors compared between the two stocks.

About Reservoir Media

Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and 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.