Comparing S4 Capital (OTCMKTS:SCPPF) & Perion Network (NASDAQ:PERI)

Perion Network (NASDAQ:PERI) and S4 Capital (OTCMKTS:SCPPF) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

68.1% of Perion Network shares are owned by institutional investors. 2.8% of Perion Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Perion Network and S4 Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	1	1	4	0	2.50
S4 Capital	0	1	0	0	2.00

Perion Network presently has a consensus target price of $13.88, indicating a potential upside of 41.44%. Given Perion Network’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Perion Network is more favorable than S4 Capital.

Valuation and Earnings

This table compares Perion Network and S4 Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$440.96 million	0.87	-$7.93 million	($0.25)	-39.24
S4 Capital	N/A	N/A	N/A	N/A	N/A

S4 Capital has lower revenue, but higher earnings than Perion Network.

Profitability

This table compares Perion Network and S4 Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perion Network	-2.17%	3.34%	2.50%
S4 Capital	N/A	N/A	N/A

Summary

Perion Network beats S4 Capital on 8 of the 9 factors compared between the two stocks.

About Perion Network

Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It offers Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also provides supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights; creative platform, a robust media platform; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it offers an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company provides a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it offers Intelligent HUB (iHUB), which connects the supply and demand sides of the marketplace; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.

About S4 Capital

S4 Capital plc, together with its subsidiaries, provides digital advertising and marketing services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Content, Data & Digital Media, and Technology Services. The company offers contents, campaigns, and assets for paid, social, and earned media, such as digital platforms and apps, as well as brand activations. It also provides campaign management analytics, creative production and ad serving, platform and systems integration, transition, and training and education services. In addition, the company offers digital transformation services in delivering digital product design, engineering, and delivery services. S4 Capital plc is headquartered in London, the United Kingdom.