New Relic (NYSE: NEWR) and Perion Network (NASDAQ:MAIL) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Earnings & Valuation

This table compares New Relic and Perion Network’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
New Relic $263.48 million 10.76 -$61.07 million ($1.13) -46.01
Perion Network N/A N/A N/A N/A N/A

Perion Network has higher revenue, but lower earnings than New Relic.

Analyst Ratings

This is a breakdown of recent ratings and price targets for New Relic and Perion Network, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 2 11 0 2.85
Perion Network 0 0 0 0 N/A

New Relic currently has a consensus price target of $51.64, indicating a potential downside of 0.68%. Given New Relic’s higher probable upside, equities analysts clearly believe New Relic is more favorable than Perion Network.

Profitability

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

Net Margins Return on Equity Return on Assets
New Relic -20.68% -29.19% -16.58%
Perion Network -51.68% -76.28% -44.81%

Institutional & Insider Ownership

74.9% of New Relic shares are held by institutional investors. 23.1% of New Relic shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

New Relic beats Perion Network on 8 of the 8 factors compared between the two stocks.

About New Relic

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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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