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

Profitability

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

Net Margins Return on Equity Return on Assets
Perion Network 3.21% 10.33% 5.87%
Modsys International N/A N/A N/A

Risk & Volatility

Perion Network has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Modsys International has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

10.5% of Perion Network shares are held by institutional investors. 30.8% of Modsys International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Perion Network and Modsys International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perion Network $252.85 million 0.28 $8.12 million $0.31 8.77
Modsys International $10.98 million 1.95 -$12.18 million N/A N/A

Perion Network has higher revenue and earnings than Modsys International.

Analyst Ratings

This is a summary of current ratings and recommmendations for Perion Network and Modsys International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perion Network 0 1 0 0 2.00
Modsys International 0 0 0 0 N/A

Perion Network currently has a consensus price target of $6.75, indicating a potential upside of 148.16%. Given Perion Network’s higher possible upside, equities analysts clearly believe Perion Network is more favorable than Modsys International.

Summary

Perion Network beats Modsys International on 8 of the 10 factors compared between the two stocks.

About Perion Network

Perion Network Ltd. is a global technology company, which engages in the provision of advertising solutions to brands and publishers. It offers the following business solutions: Undertone, which connects brands to consumers using engaging creatives; Code Fuel, which enables developers to optimize search traffic and generate incremental revenue; MakeMeReach, an automated social management platform that help ad performance across Facebook, Twitter, Instagram, and Snapchat; and Smilebox, a desktop and mobile applications. The company was founded by Ofer Adler and Yaron Adler in November 1999 and is headquartered Holon, Israel.

About Modsys International

ModSys International Ltd. develops and markets enterprise legacy information technology (IT) modernization solutions and services worldwide. Its technologies and services allow businesses to migrate from their legacy mainframe and distributed IT infrastructures to modern environments and programming languages. The company's activities include the conversion of legacy mainframe applications written in COBOL, CA GEN, Natural, and PL/1 to Java and C# code; conversion of legacy databases, such as IDMS, ADABAS, VSAM, IMS, and ICL to SQL Server, Oracle, and DB2 environments; and selling data mirroring software that allows companies to integrate legacy databases with modern relational databases on a routine/ongoing basis enabling data share across an organization without migration. It also provides professional services comprising project management of migrations, understanding and mapping of the applications, testing, remediation, and ongoing monitoring and management of the environments. ModSys International Ltd. offers its modernization solutions directly to customers, as well as through its strategic partners, including system integrators and other software vendors. The company was formerly known as BluePhoenix Solutions Ltd. and changed its name to ModSys International Ltd. in January 2015. ModSys International Ltd. was founded in 1987 and is headquartered in Dallas, Texas.

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