NetSuite (NYSE: N) and Perion Network (NASDAQ:PERI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitabiliy, valuation, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
NetSuite -14.93% -28.78% -7.68%
Perion Network 1.25% 8.93% 4.98%

Analyst Ratings

This is a breakdown of current ratings and target prices for NetSuite and Perion Network, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetSuite 2 19 0 0 1.90
Perion Network 0 1 0 0 2.00

NetSuite presently has a consensus price target of $100.50, suggesting a potential upside of 11.25%. Given NetSuite’s higher possible upside, equities analysts plainly believe NetSuite is more favorable than Perion Network.

Volatility & Risk

NetSuite has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Institutional and Insider Ownership

54.5% of NetSuite shares are owned by institutional investors. Comparatively, 17.1% of Perion Network shares are owned by institutional investors. 4.6% of NetSuite shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares NetSuite and Perion Network’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NetSuite N/A N/A N/A ($1.67) -54.10
Perion Network $298.98 million 0.51 $24.68 million $0.05 39.01

Perion Network has higher revenue and earnings than NetSuite. NetSuite is trading at a lower price-to-earnings ratio than Perion Network, indicating that it is currently the more affordable of the two stocks.

Summary

Perion Network beats NetSuite on 7 of the 10 factors compared between the two stocks.

About NetSuite

NetSuite Inc. (NetSuite) is a provider of cloud-based financials, enterprise resource planning and omnichannel commerce software suites. The Company offers a suite of applications, including financial management, customer relationship management, e-commerce and retail management, commerce marketing automation, professional services automation and human capital management that enable companies to manage business operations in an integrated suite. The Company also offers customer support and professional services related to the support and implementation of its suite of applications. The Company delivers its applications over the Internet as a subscription service using the software-as-a-service model. The Company’s offerings include NetSuite, NetSuite OneWorld, NetSuite CRM+, NetSuite OpenAir PSA, SuiteCommerce, Bronto Marketing Platform, NetSuite InStore POS, LightCMS, Add-On Modules, NetSuite Industry Editions and SuiteCloud Platform.

About Perion Network

Perion Network Ltd. is a global technology company. It is engaged in delivering advertising solutions to brands and publishers. It operates through High Impact Advertising solutions segment. It provides execution, ranging from high-impact advertisement formats to branded search, and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, Growmobile, IncrediMail and Smilebox. Undertone offers engaging digital advertising, which is designed to capture consumer attention and drive engagement, delivering these advertisements across a portfolio of Websites and mobile applications. CodeFuel is an engagement and monetization suite delivering solutions for both content publishers and advertisers. Growmobile offers automated marketing solutions ranging from social advertising to user engagement. IncrediMail is a unified messaging application. Smilebox is a photo sharing and social expression product and offers various formats, themes and styles.

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