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

Profitability

This table compares Perion Network and Electronic Arts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perion Network 1.25% 8.93% 4.98%
Electronic Arts 19.96% 27.60% 14.24%

Valuation & Earnings

This table compares Perion Network and Electronic Arts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perion Network $298.98 million 0.47 $24.68 million $0.05 36.01
Electronic Arts $4.85 billion 7.17 $1.41 billion $3.08 36.44

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

Volatility & Risk

Perion Network has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Electronic Arts has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

17.1% of Perion Network shares are owned by institutional investors. Comparatively, 98.2% of Electronic Arts shares are owned by institutional investors. 2.6% of Electronic Arts shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Perion Network and Electronic Arts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perion Network 0 1 0 0 2.00
Electronic Arts 0 5 17 0 2.77

Electronic Arts has a consensus target price of $107.81, suggesting a potential downside of 3.93%. Given Electronic Arts’ stronger consensus rating and higher probable upside, analysts plainly believe Electronic Arts is more favorable than Perion Network.

Summary

Electronic Arts beats Perion Network on 13 of the 14 factors compared between the two stocks.

Perion Network Company Profile

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.

Electronic Arts Company Profile

Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company’s PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.

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