PERI or BCOV: Which Is the Better Value Stock Right Now?

BCOV PERI

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 offers value investors a better bang for their buck right now? We'll need to take a closer look.

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.

Perion Network has a Zacks Rank of #2 (Buy), while Brightcove has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PERI has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 7.79, while BCOV has a forward P/E of 334.33. We also note that PERI has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BCOV currently has a PEG ratio of 22.29.

Another notable valuation metric for PERI is its P/B ratio of 0.51. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BCOV has a P/B of 5.60.

Based on these metrics and many more, PERI holds a Value grade of A, while BCOV has a Value grade of D.

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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