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PERI vs. RELX: 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 RELX PLC (RELX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Perion Network has a Zacks Rank of #1 (Strong Buy), while RELX PLC 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PERI currently has a forward P/E ratio of 10.12, while RELX has a forward P/E of 22.24. We also note that PERI has a PEG ratio of 0.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RELX currently has a PEG ratio of 2.17.

Another notable valuation metric for PERI is its P/B ratio of 1.61. 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, RELX has a P/B of 12.71.

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