Perion Network (NASDAQ:PERI) and NTT DATA CORP/ADR (OTCMKTS:NTDTY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Perion Network and NTT DATA CORP/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perion Network 0 1 0 0 2.00
NTT DATA CORP/ADR 0 0 0 0 N/A

Perion Network currently has a consensus target price of $6.75, suggesting a potential upside of 153.76%. Given Perion Network’s higher possible upside, equities analysts plainly believe Perion Network is more favorable than NTT DATA CORP/ADR.

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares Perion Network and NTT DATA CORP/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perion Network $273.99 million 0.25 -$72.75 million $0.63 4.22
NTT DATA CORP/ADR $19.12 billion 0.85 $523.55 million $0.51 22.63

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

Dividends

NTT DATA CORP/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 1.0%. Perion Network does not pay a dividend. NTT DATA CORP/ADR pays out 21.6% of its earnings in the form of a dividend.

Volatility and Risk

Perion Network has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, NTT DATA CORP/ADR has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500.

Profitability

This table compares Perion Network and NTT DATA CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perion Network -13.19% 11.26% 6.17%
NTT DATA CORP/ADR 3.41% 10.04% 3.96%

Summary

NTT DATA CORP/ADR beats Perion Network on 7 of the 13 factors compared between the two stocks.

About Perion Network

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.

About NTT DATA CORP/ADR

NTT DATA Corporation provides consulting, system development, and business information technology (IT) outsourcing services worldwide. The company operates through four segments: Public & Social Infrastructure, Financial, Enterprise & Solutions, and Global. It offers business consulting services, such as business strategy, business process optimization, and organizational change management; and IT consulting services, including IT strategy and governance, information and knowledge management, and program management office consulting services. The company also provides architecture strategy and design, application development and system integration, quality assurance and testing, application management and outsourcing, legacy modernization, mobility, and online services; embedded and real-time systems; and application development technologies. In addition, it offers enterprise application services comprising SAP, Oracle, and Microsoft application services; and enterprise resource planning, customer relationship management, supply chain management, business intelligence, and enterprise portal solutions. Further, the company provides business intelligence; analytics, predictive analytics, and data mining; enterprise performance management; big data; governance, risk, and compliance; information management; and data warehousing and data management services. Additionally, it offers infrastructure services, which include data center, IT security, application hosting, network, service desk support, contact center management, remote infrastructure management, and desktop services; and business process and infrastructure management outsourcing services. The company was formerly known as NTT Data Communications Systems Corporation and changed its name to NTT DATA Corporation in 1996. NTT DATA Corporation was founded in 1967 and is headquartered in Tokyo, Japan. NTT DATA Corporation is a subsidiary of Nippon Telegraph and Telephone Corporation.

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