Critical Analysis: Perion Network (PERI) and Radware (RDWR)

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

Earnings and Valuation

This table compares Radware and Perion Network’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Radware $196.59 million 4.53 -$8.65 million ($0.26) -78.77
Perion Network $312.79 million 0.26 $200,000.00 ($0.46) -2.24

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

Risk & Volatility

Radware has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Radware -5.74% -2.27% -1.55%
Perion Network -12.50% 7.83% 4.54%

Analyst Ratings

This is a summary of current recommendations and price targets for Radware and Perion Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radware 0 0 6 0 3.00
Perion Network 0 1 0 0 2.00

Radware currently has a consensus target price of $20.83, indicating a potential upside of 1.73%. Given Radware’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Radware is more favorable than Perion Network.

Insider and Institutional Ownership

61.7% of Radware shares are held by institutional investors. Comparatively, 19.4% of Perion Network shares are held by institutional investors. 21.6% of Radware shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Radware beats Perion Network on 8 of the 13 factors compared between the two stocks.

About Radware

Radware Ltd. is a provider of cyber security and application delivery solutions. The Company’s solutions incorporate Distributed Denial of Service protection, Web application firewall (WAF) and Application Delivery Controllers (ADC) technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. The Company’s products and activities are focused on protecting against cyber-attacks and ensuring optimal application service level for enterprises’ and carriers’ data centers. Its solutions include application and network security, and application delivery. Its application and network Security products include DefensePro Attack Mitigation Device, AppWall Web Application Firewall, DefenseFlow Cyber Command and Control application, and DefensePipe Cloud Scrubbing Service. Its application delivery products include Alteon NG, LinkProof NG and FastView. Its management solutions include APSolute Vision, application performance monitoring and vDirect.

About Perion Network

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.

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