Perion Network (NASDAQ: PERI) and SeaChange International (NASDAQ:SEAC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Institutional and Insider Ownership

19.4% of Perion Network shares are held by institutional investors. Comparatively, 73.0% of SeaChange International shares are held by institutional investors. 2.9% of SeaChange International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Perion Network and SeaChange International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perion Network 0 1 0 0 2.00
SeaChange International 0 0 2 0 3.00

SeaChange International has a consensus price target of $4.25, suggesting a potential upside of 18.72%. Given SeaChange International’s stronger consensus rating and higher possible upside, analysts plainly believe SeaChange International is more favorable than Perion Network.

Risk and Volatility

Perion Network has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, SeaChange International has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Perion Network and SeaChange International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perion Network $312.79 million 0.28 $200,000.00 ($0.46) -2.41
SeaChange International $83.79 million 1.52 -$71.24 million ($0.98) -3.65

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

Profitability

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

Net Margins Return on Equity Return on Assets
Perion Network -12.50% 7.83% 4.54%
SeaChange International -42.52% -5.91% -3.55%

Summary

Perion Network beats SeaChange International on 8 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.

SeaChange International Company Profile

SeaChange International, Inc. (SeaChange) is engaged in the delivery of multiscreen video. The Company’s products and services facilitate the aggregation, licensing, management and distribution of video and advertising content for cable television system operators, telecommunications companies, satellite operators and media companies. SeaChange sells its software products and services across the world, to television service providers, including cable television system operators, telecommunications companies, satellite operators and media companies. Its systems enable service providers to offer other interactive television services that allow subscribers to receive personalized services and interact with their video devices. Its business consists of three product areas: multiscreen video backoffice, advertising and video gateway software solutions. It also offers SeaChange Infusion Advanced Advertising Platform, Adrenalin, SeaChange Infusion Advanced Advertising Platform and Nucleus.

Receive News & Ratings for Perion Network Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Perion Network and related companies with MarketBeat.com's FREE daily email newsletter.