Perion Network (NASDAQ:PERI – Get Free Report) and News (NASDAQ:NWS – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Volatility and Risk
Perion Network has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, News has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Profitability
This table compares Perion Network and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perion Network | -2.95% | 2.43% | 1.81% |
| News | 6.35% | 7.09% | 4.27% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perion Network | 1 | 1 | 4 | 0 | 2.50 |
| News | 0 | 0 | 1 | 1 | 3.50 |
Perion Network presently has a consensus price target of $13.88, suggesting a potential upside of 49.03%. Given Perion Network’s higher probable upside, analysts clearly believe Perion Network is more favorable than News.
Earnings and Valuation
This table compares Perion Network and News”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perion Network | $436.22 million | 0.83 | -$7.93 million | ($0.35) | -26.60 |
| News | $9.03 billion | 2.03 | $573.00 million | $1.03 | 32.89 |
News has higher revenue and earnings than Perion Network. Perion Network is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.1% of Perion Network shares are held by institutional investors. Comparatively, 14.6% of News shares are held by institutional investors. 2.8% of Perion Network shares are held by insiders. Comparatively, 11.1% of News shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
News beats Perion Network on 11 of the 15 factors compared between the two stocks.
About Perion Network
Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It offers Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also provides supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights; creative platform, a robust media platform; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it offers an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company provides a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it offers Intelligent HUB (iHUB), which connects the supply and demand sides of the marketplace; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. 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.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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