Back to top

Image: Bigstock

PERI vs. DHX: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors with an interest in Internet - Content stocks have likely encountered both Perion Network (PERI - Free Report) and DHI Group (DHX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Perion Network has a Zacks Rank of #2 (Buy), while DHI Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PERI has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PERI currently has a forward P/E ratio of 18.58, while DHX has a forward P/E of 100.17. We also note that PERI has a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHX currently has a PEG ratio of 4.01.

Another notable valuation metric for PERI is its P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHX has a P/B of 2.56.

Based on these metrics and many more, PERI holds a Value grade of B, while DHX has a Value grade of C.

PERI sticks out from DHX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PERI is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Perion Network Ltd (PERI) - free report >>

DHI Group, Inc. (DHX) - free report >>

Published in