2U vs Pearson Which Is More Profitable?

2U and Pearson are two leading companies in the education sector, but they take different approaches to delivering their services. 2U is a technology-enabled education company that partners with top universities to offer online degree programs, while Pearson is a traditional education publisher that provides print and digital learning materials. Investors may be interested in comparing the performance of 2U and Pearson stocks to determine which company is better positioned for success in the evolving education industry.

2U or Pearson?

When comparing 2U and Pearson, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between 2U and Pearson.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. 2U has a dividend yield of -%, while Pearson has a dividend yield of 1.87%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. 2U reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Pearson reports a 5-year dividend growth of 2.35% year and a payout ratio of 40.22%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with 2U P/E ratio at -0.01 and Pearson's P/E ratio at 19.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. 2U P/B ratio is -0.02 while Pearson's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, 2U has seen a 5-year revenue growth of 0.59%, while Pearson's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with 2U's ROE at -650.85% and Pearson's ROE at 11.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.53 for 2U and $15.59 for Pearson. Over the past year, 2U's prices ranged from $1.05 to $128.10, with a yearly change of 12100.00%. Pearson's prices fluctuated between $11.69 and $16.01, with a yearly change of 36.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.