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

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Investors looking for stocks in the Internet - Content sector might want to consider either Perion Network (PERI - Free Report) or RELX PLC (RELX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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 #1 (Strong Buy), while RELX PLC has a Zacks Rank of #3 (Hold) 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. But this is only part of the picture for value investors.

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.

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 11.93, while RELX has a forward P/E of 23. We also note that PERI has a PEG ratio of 0.48. 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 1.71.

Another notable valuation metric for PERI is its P/B ratio of 2.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RELX has a P/B of 11.23.

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

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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