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

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Investors interested in stocks from the Internet - Content sector have probably already heard of Perion Network (PERI - Free Report) and RELX PLC (RELX - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Perion Network and RELX PLC are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PERI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 11.25, while RELX has a forward P/E of 21.78. We also note that PERI has a PEG ratio of 0.45. 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. RELX currently has a PEG ratio of 2.13.

Another notable valuation metric for PERI is its P/B ratio of 1.79. 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, RELX has a P/B of 12.45.

These are just a few of the metrics contributing to PERI's Value grade of B and RELX's Value grade of C.

PERI stands above RELX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PERI is the superior value option right now.


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