Back to top

Image: Bigstock

PERI vs. BCOV: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in stocks from the Internet - Content sector have probably already heard of Perion Network (PERI - Free Report) and Brightcove (BCOV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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 Brightcove has a Zacks Rank of #2 (Buy). 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 just one piece of the puzzle for value investors.

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.

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 16.67, while BCOV has a forward P/E of 137.77. We also note that PERI has a PEG ratio of 2.78. 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. BCOV currently has a PEG ratio of 9.18.

Another notable valuation metric for PERI is its P/B ratio of 0.92. 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, BCOV has a P/B of 6.34.

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

PERI sticks out from BCOV in both our Zacks Rank and Style Scores models, so value investors will likely feel that PERI is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brightcove Inc. (BCOV) - free report >>

Perion Network Ltd (PERI) - free report >>

Published in