Analyzing Angi (NASDAQ:ANGI) and Perion Network (NASDAQ:PERI)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Perion Network and Angi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	1	1	3	0	2.40
Angi	1	4	3	1	2.44

Perion Network currently has a consensus target price of $14.50, suggesting a potential upside of 59.69%. Angi has a consensus target price of $15.33, suggesting a potential upside of 90.17%. Given Angi’s stronger consensus rating and higher probable upside, analysts plainly believe Angi is more favorable than Perion Network.

Earnings & Valuation

This table compares Perion Network and Angi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$432.36 million	0.86	$12.61 million	($0.26)	-34.92
Angi	$1.03 billion	0.34	$43.83 million	$0.93	8.67

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

Institutional & Insider Ownership

68.1% of Perion Network shares are owned by institutional investors. Comparatively, 12.8% of Angi shares are owned by institutional investors. 2.8% of Perion Network shares are owned by company insiders. Comparatively, 1.7% of Angi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perion Network	-2.53%	2.28%	1.77%
Angi	4.25%	4.41%	2.50%

Risk and Volatility

Perion Network has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Angi has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

Angi beats Perion Network on 11 of the 14 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 Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.