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PERI vs. RELX: Which Stock Is the Better Value Option?

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Investors interested in Internet - Content stocks are likely familiar with Perion Network (PERI - Free Report) and RELX PLC (RELX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Perion Network and RELX PLC are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that PERI likely has seen a stronger improvement to its earnings outlook than RELX has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PERI currently has a forward P/E ratio of 10.95, while RELX has a forward P/E of 21.41. We also note that PERI has a PEG ratio of 0.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RELX currently has a PEG ratio of 1.62.

Another notable valuation metric for PERI is its P/B ratio of 1.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RELX has a P/B of 10.45.

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

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


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