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PERI or RELX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Internet - Content sector might want to consider either Perion Network (PERI - Free Report) or RELX PLC (RELX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Perion Network has a Zacks Rank of #1 (Strong Buy), while RELX PLC has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PERI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 10.82, while RELX has a forward P/E of 20.43. We also note that PERI has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RELX currently has a PEG ratio of 1.52.

Another notable valuation metric for PERI is its P/B ratio of 2.07. 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 11.69.

These metrics, and several others, help PERI earn a Value grade of B, while RELX has been given 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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