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

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Investors looking for stocks in the Internet - Content sector might want to consider either Perion Network (PERI - Free Report) or 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.

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.

Perion Network has a Zacks Rank of #1 (Strong Buy), while Brightcove has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than BCOV has recently. But this is only part of the picture 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 11.82, while BCOV has a forward P/E of 35.30. We also note that PERI has a PEG ratio of 1.97. 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. BCOV currently has a PEG ratio of 2.35.

Another notable valuation metric for PERI is its P/B ratio of 1.25. 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 4.17.

These are just a few of the metrics contributing to PERI's Value grade of B and BCOV's Value grade of D.

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.


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