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

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Investors with an interest in Internet - Content stocks have likely encountered both Perion Network (PERI - Free Report) and TechTarget (TTGT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Perion Network has a Zacks Rank of #1 (Strong Buy), while TechTarget has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than TTGT has recently. But this is just one piece of the puzzle for value investors.

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 6.39, while TTGT has a forward P/E of 18.54. We also note that PERI has a PEG ratio of 0.29. 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. TTGT currently has a PEG ratio of 3.43.

Another notable valuation metric for PERI is its P/B ratio of 1.37. 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, TTGT has a P/B of 3.96.

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