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

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Investors with an interest in Internet - Content stocks have likely encountered both Perion Network (PERI - Free Report) and Shutterstock (SSTK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Perion Network has a Zacks Rank of #2 (Buy), while Shutterstock has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than SSTK has recently. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PERI currently has a forward P/E ratio of 26.99, while SSTK has a forward P/E of 33.97. We also note that PERI has a PEG ratio of 2.57. 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. SSTK currently has a PEG ratio of 2.61.

Another notable valuation metric for PERI is its P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SSTK has a P/B of 8.17.

These metrics, and several others, help PERI earn a Value grade of B, while SSTK has been given a Value grade of C.

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


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