Perion Network (NASDAQ:PERI) and Luxoft (NYSE:LXFT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
This is a summary of recent ratings and recommmendations for Perion Network and Luxoft, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Perion Network presently has a consensus target price of $0.75, suggesting a potential downside of 73.59%. Luxoft has a consensus target price of $52.13, suggesting a potential upside of 21.67%. Given Luxoft’s stronger consensus rating and higher probable upside, analysts plainly believe Luxoft is more favorable than Perion Network.
Risk and Volatility
Perion Network has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Luxoft has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.
This table compares Perion Network and Luxoft’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Perion Network and Luxoft’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Perion Network||$273.99 million||0.27||-$72.75 million||$0.63||4.51|
|Luxoft||$906.77 million||1.59||$57.01 million||$2.09||20.50|
Luxoft has higher revenue and earnings than Perion Network. Perion Network is trading at a lower price-to-earnings ratio than Luxoft, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
34.5% of Perion Network shares are held by institutional investors. Comparatively, 53.2% of Luxoft shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Luxoft beats Perion Network on 13 of the 13 factors compared between the two stocks.
About Perion Network
Perion Network Ltd., a technology company, delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. The company develops digital advertising solutions to capture consumer attention and drive engagement, as well as delivers ads across a portfolio of Websites and mobile applications. Its proprietary social marketing platform offers a dashboard for marketers that make media buying efficient on Facebook, Instagram, Twitter, and other social networks and platforms. The company's platform allows advertisers to control their marketing expenditures, in-house planning and strategy, and utilize the technical tool to create operational marketing efficiencies. In addition, it provides search-based monetization solutions for publishers with analytics capabilities to track and monitor their business performance; toolbar platform, which allows publishers to create, implement, and distribute Web browser toolbars, as well as through consumer products; Smilebox, a photo sharing and social expression product; and IncrediMail a messaging application that enables consumers to manage various email accounts in one place. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.
Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations. The company offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality assurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services. Its products and platforms include Populus, a tool chain for human machine interface (HMI) design and development, and the deployment of automotive user interfaces for distributed embedded systems; Qt Automotive Suite, which enables developers to create stunning user experience and ease the integration toward the system backend; AllView, an user-experience demonstrator; software tools and consulting services focused on scheduling analysis, architecture optimization, and timing verification; Pelux, a base development platform; and ARP, an automotive hardware reference platform. It serves financial services, automotive and transport, healthcare and life sciences, travel and aviation, technology, telecom, energy, and other industries. The company operates in North America, Europe, Russia, the Asia-Pacific, and internationally. Luxoft Holding, Inc. was founded in 2000 and is headquartered in Zug, Switzerland.
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