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PERI or TTGT: 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 TechTarget (TTGT - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Perion Network has a Zacks Rank of #1 (Strong Buy), while TechTarget has a Zacks Rank of #3 (Hold). 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 just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 6.53, while TTGT has a forward P/E of 18.63. We also note that PERI has a PEG ratio of 0.30. 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. TTGT currently has a PEG ratio of 3.44.

Another notable valuation metric for PERI is its P/B ratio of 1.40. 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, TTGT has a P/B of 3.98.

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

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


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