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PERI vs. BCOV: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Internet - Content sector have probably already heard of Perion Network (PERI - Free Report) and Brightcove (BCOV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Perion Network is sporting a Zacks Rank of #2 (Buy), while Brightcove has a Zacks Rank of #3 (Hold). This means that PERI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

PERI currently has a forward P/E ratio of 9.09, while BCOV has a forward P/E of 344.33. We also note that PERI has a PEG ratio of 1.52. 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. BCOV currently has a PEG ratio of 22.96.

Another notable valuation metric for PERI is its P/B ratio of 0.50. 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, BCOV has a P/B of 5.77.

These metrics, and several others, help PERI earn a Value grade of A, while BCOV has been given a Value grade of F.

PERI has seen stronger estimate revision activity and sports more attractive valuation metrics than BCOV, so it seems like value investors will conclude that PERI is the superior option right now.


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