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

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Investors interested in Internet - Content stocks are likely familiar with Perion Network (PERI - Free Report) and Shutterstock (SSTK - 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.

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.

Right now, Perion Network is sporting a Zacks Rank of #1 (Strong Buy), while Shutterstock has a Zacks Rank of #3 (Hold). This means that PERI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PERI currently has a forward P/E ratio of 13.20, while SSTK has a forward P/E of 17.15. We also note that PERI has a PEG ratio of 0.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SSTK currently has a PEG ratio of 3.60.

Another notable valuation metric for PERI is its P/B ratio of 2.81. 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, SSTK has a P/B of 5.49.

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

PERI stands above SSTK 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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