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

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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 companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Perion Network is sporting a Zacks Rank of #1 (Strong Buy), while RELX PLC has a Zacks Rank of #4 (Sell). 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. But this is just one factor that value investors are interested in.

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.

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 11.32, while RELX has a forward P/E of 23.17. We also note that PERI has a PEG ratio of 0.45. 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 1.72.

Another notable valuation metric for PERI is its P/B ratio of 2.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RELX has a P/B of 11.31.

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

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


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