Aspen Technology (NASDAQ: AZPN) and Perion Network (NASDAQ:PERI) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Institutional and Insider Ownership

12.1% of Perion Network shares are owned by institutional investors. 0.8% of Aspen Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Aspen Technology has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Aspen Technology and Perion Network, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Technology 2 2 3 0 2.14
Perion Network 0 0 0 0 N/A

Aspen Technology currently has a consensus target price of $81.86, indicating a potential downside of 12.52%. Given Aspen Technology’s higher probable upside, equities analysts clearly believe Aspen Technology is more favorable than Perion Network.

Valuation and Earnings

This table compares Aspen Technology and Perion Network’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aspen Technology $482.94 million 13.84 $162.19 million $2.11 44.35
Perion Network $273.99 million 0.30 -$72.75 million N/A N/A

Aspen Technology has higher revenue and earnings than Perion Network.

Profitability

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

Net Margins Return on Equity Return on Assets
Aspen Technology 33.19% -61.04% 73.96%
Perion Network -25.88% 10.82% 5.96%

Summary

Aspen Technology beats Perion Network on 9 of the 12 factors compared between the two stocks.

Aspen Technology Company Profile

Aspen Technology, Inc., together with its subsidiaries, provides software and services in the United States, Europe, and internationally. It operates through two segments, Subscription and Software, and Services. It supplies asset optimization solutions that optimize asset design, operations, and maintenance lifecycle in various industrial environments. The company's software suites include aspenONE Engineering, aspenONE Manufacturing and Supply Chain, and aspenONE Asset Performance Management, which are integrated applications that allow end users to design process manufacturing environments, forecast and simulate potential actions, monitor operational performances, predict the reliability of an asset and equipment failure, and manage planning and scheduling activities, as well as collaborate across these functions and activities. It also provides software maintenance and support, professional, and training services. The company's customers include companies that are engaged in the process and other industries, including energy, chemicals, engineering, and construction, as well as pharmaceuticals, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts.

Perion Network Company Profile

Perion Network Ltd., a technology company, delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. The company develops digital advertising solutions to capture consumer attention and drive engagement, as well as delivers ads across a portfolio of Websites and mobile applications. Its proprietary social marketing platform offers a dashboard for marketers that make media buying efficient on Facebook, Instagram, Twitter, and other social networks and platforms. The company's platform allows advertisers to control their marketing expenditures, in-house planning and strategy, and utilize the technical tool to create operational marketing efficiencies. In addition, it provides search-based monetization solutions for publishers with analytics capabilities to track and monitor their business performance; toolbar platform, which allows publishers to create, implement, and distribute Web browser toolbars, as well as through consumer products; Smilebox, a photo sharing and social expression product; and IncrediMail a messaging application that enables consumers to manage various email accounts in one place. 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.

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