Critical Comparison: Perion Network (NASDAQ:PERI) vs. Dex Media (OTCMKTS:DXMMQ)

Dex Media (OTCMKTS:DXMMQ) and Perion Network (NASDAQ:PERI) are both small-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

68.1% of Perion Network shares are held by institutional investors. 2.8% of Perion Network shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Dex Media and Perion Network”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dex Media	N/A	N/A	N/A	N/A	N/A
Perion Network	$439.93 million	0.87	-$7.93 million	($0.35)	-28.03

Dex Media has higher earnings, but lower revenue than Perion Network.

Profitability

This table compares Dex Media and Perion Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dex Media	N/A	N/A	N/A
Perion Network	-2.95%	2.43%	1.81%

Analyst Recommendations

This is a summary of recent ratings and price targets for Dex Media and Perion Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dex Media	0	0	0	0	0.00
Perion Network	1	1	4	0	2.50

Perion Network has a consensus price target of $13.88, indicating a potential upside of 41.44%. Given Perion Network’s stronger consensus rating and higher possible upside, analysts plainly believe Perion Network is more favorable than Dex Media.

Summary

Perion Network beats Dex Media on 8 of the 9 factors compared between the two stocks.

About Dex Media

Dex Media, Inc. is a provider of local marketing solutions to business clients across the United States. The Company’s local marketing solutions are primarily sold under Dex and Super brands, including print yellow page directories, online local search engine Websites, mobile local search applications, and placement of its client’s information and advertisements on search engine Websites, with, which the Company is affiliated. Its local marketing solutions also include Website development, search engine optimization, market analysis, video development and promotion, reputation management, social media marketing, and tracking and reporting of customer leads. Its print yellow page directories are co-branded with various local telephone service providers. The Company offers various solutions, such as DexHub, DexLnk, Social Media, Search Engine Optimization (SEO), Websites, Performance Tracking Program and Search Engine Marketing (SEM), among others.

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.