Perion Network (NASDAQ: PERI) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its competitors? We will compare Perion Network to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Insider & Institutional Ownership

19.4% of Perion Network shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 15.7% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Perion Network and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perion Network -11.31% 8.57% 4.95%
Perion Network Competitors -62.31% -92.19% -16.43%

Risk & Volatility

Perion Network has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Perion Network’s competitors have a beta of 1.61, indicating that their average share price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Perion Network and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perion Network 0 1 0 0 2.00
Perion Network Competitors 179 1514 2878 96 2.62

As a group, “Application Software” companies have a potential upside of 5.62%. Given Perion Network’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Perion Network has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Perion Network and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Perion Network $290.67 million $24.96 million -2.81
Perion Network Competitors $761.46 million $137.65 million -12.28

Perion Network’s competitors have higher revenue and earnings than Perion Network. Perion Network is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Perion Network competitors beat Perion Network on 8 of the 13 factors compared.

About Perion Network

Perion Network Ltd. is a global technology company. It is engaged in delivering advertising solutions to brands and publishers. It operates through High Impact Advertising solutions segment. It provides execution, ranging from high-impact advertisement formats to branded search, and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, Growmobile, IncrediMail and Smilebox. Undertone offers engaging digital advertising, which is designed to capture consumer attention and drive engagement, delivering these advertisements across a portfolio of Websites and mobile applications. CodeFuel is an engagement and monetization suite delivering solutions for both content publishers and advertisers. Growmobile offers automated marketing solutions ranging from social advertising to user engagement. IncrediMail is a unified messaging application. Smilebox is a photo sharing and social expression product and offers various formats, themes and styles.

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