Which stock is the best value option?

Read Time:2 Minute, 3 Second

Investors who are interested in stocks of the Internet – Content industry will have likely heard of RELX (RELX) and Perion Network. Which stock is more appealing to value investors? We will need to have a closer look to determine.

Combining a strong Zacks Rank and a highly rated grade in the Value section of our Style Scores program is the best way to identify great value stocks. The Zacks Rank is a reliable indicator of companies that are able to revise their estimates in a positive trend. Our Style Scores indicate stocks with particular traits.

RELX PLC and Perion Network have Zacks ranks of #1 (Strong Buy), and #3 (Hold) respectively. Investors should be reassured that PERI has likely seen a stronger improvement in its earnings outlook than RELX recently. This is just one aspect of the picture for value-investors.

Value investors look at a range of traditional metrics and figures to determine whether a company is undervalued at current share prices.

The Style Scores System’s Value category looks at several key metrics to identify undervalued companies. These include the P/E ratio, long-favored P/S ratio and earnings yield. We also consider cash flow per share and other fundamentals to determine a company’s fair value.

PERI currently has a forward ratio of 11.59 to RELX’s forward P/E. We also noticed that PERI’s PEG ratio is 0.46. This metric is similar to the P/E ratio. However the PEG ratio also accounts for the stock’s expected earnings increase rate. RELX currently has an PEG ratio 1.81.

Another important valuation metric of PERI is its P/B rate of 2.10. The P/B ratio is a way to compare a stock’s current market value and its book value. This is the sum of total assets less total liabilities. RELX, however, has a P/B value of 11.91.

These metrics and many other factors give PERI a value score of B. RELX is a value rating of C.

PERI has had a stronger estimate revision activity than RELX and boasts more attractive valuation metrics, so value investors may conclude that PERI will be the better option.

Get the most recent Zacks Investment Research recommendations. Download 7 Best Stocks in the Next 30 Days Today Click to get this free report

Perion Network Ltd (PERI) : Free Stock Analysis Report

RELX PLC (RELX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
Previous post Jon Moxley Takes On Sammy Guevara
Next post Zach Wilson may get his last shot at the Jets as they face a QB decision from the franchise