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

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Investors interested in Internet - Content stocks are likely familiar with 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Perion Network and Brightcove are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PERI currently has a forward P/E ratio of 41, while BCOV has a forward P/E of 60.76. We also note that PERI has a PEG ratio of 3.90. 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 4.05.

Another notable valuation metric for PERI is its P/B ratio of 1.79. 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 9.47.

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

Both PERI and BCOV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PERI is the superior value option right now.


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