DIS or PSO: Which Is the Better Value Stock Right Now?

Core Viewpoint - The comparison between Walt Disney (DIS) and Pearson (PSO) indicates that DIS currently offers better value for investors based on earnings outlook and valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Outlook - DIS has a Zacks Rank of 2 (Buy), while PSO has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for DIS [3]. - The improvement in DIS's earnings outlook is noted to be stronger than that of PSO [3]. Group 2: Valuation Metrics - DIS has a forward P/E ratio of 20.71, compared to PSO's forward P/E of 20.79, indicating a competitive valuation [5]. - The PEG ratio for DIS is 2.01, while PSO's PEG ratio is higher at 3.08, suggesting DIS may be undervalued relative to its expected EPS growth [5]. - DIS's P/B ratio stands at 1.93, whereas PSO's P/B ratio is 2.24, further supporting DIS as the more attractive option [6]. Group 3: Value Grades - DIS holds a Value grade of B, while PSO has a Value grade of C, reinforcing the conclusion that DIS is the superior value option at this time [7].