John Wiley & Sons (NYSE:WLYB – Get Rating) and Scholastic (NASDAQ:SCHL – Get Rating) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Insider & Institutional Ownership
77.2% of Scholastic shares are owned by institutional investors. 29.7% of John Wiley & Sons shares are owned by company insiders. Comparatively, 20.7% of Scholastic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
John Wiley & Sons has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Scholastic has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
John Wiley & Sons pays an annual dividend of $1.38 per share and has a dividend yield of 2.6%. Scholastic pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. John Wiley & Sons pays out 53.3% of its earnings in the form of a dividend. Scholastic pays out 60.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and target prices for John Wiley & Sons and Scholastic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John Wiley & Sons||0||0||0||0||N/A|
Valuation & Earnings
This table compares John Wiley & Sons and Scholastic’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|John Wiley & Sons||$1.94 billion||1.51||$148.26 million||$2.59||20.37|
|Scholastic||$1.30 billion||0.99||-$11.00 million||$0.99||37.68|
John Wiley & Sons has higher revenue and earnings than Scholastic. John Wiley & Sons is trading at a lower price-to-earnings ratio than Scholastic, indicating that it is currently the more affordable of the two stocks.
This table compares John Wiley & Sons and Scholastic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John Wiley & Sons||7.06%||18.61%||6.04%|
John Wiley & Sons beats Scholastic on 11 of the 13 factors compared between the two stocks.
John Wiley & Sons Company Profile (Get Rating)
John Wiley & Sons, Inc. operates as a research and education company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services. The Research Publishing & Platforms segment offers scientific, technical, medical, and scholarly journals, as well as related content and services to learned societies, individual researchers, other professionals, and academic, corporate, and government libraries. This segment also publishes physical sciences and engineering, health sciences, social sciences, and humanities and life sciences journals; and provides a publishing software and service for scholarly and professional societies, and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum platform. It sells and distributes its products through various channels, including research libraries and library consortia, and independent subscription agents, as well as directly to professional society members, and other customers. The Academic & Professional Learning segment provides scientific, professional, and education print and digital books, digital courseware, and test preparation services to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals. This segment distributes its products through chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, Websites, distributor networks, and other online applications. The Education Services segment provides online program management services for higher education institutions and mthree talent placement services for professionals and businesses. The company was founded in 1807 and is headquartered in Hoboken, New Jersey.
Scholastic Company Profile (Get Rating)
Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and school book fair channels, as well as through its trade channel. Its original publications include the Harry Potter, Hunger Games, Bad Guys, Baby-Sitters Club graphic novels, Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, Goosebumps, and Clifford The Big Red Dog; and licensed properties comprise the Peppa Pig and Pokemon. In addition, this segment publishes and creates books plus products for children, including titles, such as the Make Your Own Pet Adoption Truck, Mini Bake Shop, LEGO Gear Bots, Never Touch series, and other titles under the Klutz and the Make Believe Ideas names; and non-fiction books under the Children's Press and Franklin Watts names . The Education segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let's Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment offers original trade and educational publishing programs; distributes children's books, digital educational resources, and other materials through school-based book clubs, school-based book fairs, and trade channels; produces and distributes magazines; and offers online subscription services. The company distributes its products and services directly to schools and libraries through retail stores and the Internet. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.
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