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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 offers value investors a better bang for their buck right now? We'll need to take a closer look.

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. 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. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 12.09, while RELX has a forward P/E of 23.61. We also note that PERI has a PEG ratio of 0.48. 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 1.75.

Another notable valuation metric for PERI is its P/B ratio of 2.19. 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 11.52.

Based on these metrics and many more, PERI holds a Value grade of B, while RELX has 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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