Analyzing Perion Network (NASDAQ:PERI) & DHI Group (NYSE:DHX)

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

Institutional and Insider Ownership

69.3% of DHI Group shares are owned by institutional investors. Comparatively, 68.1% of Perion Network shares are owned by institutional investors. 13.4% of DHI Group shares are owned by company insiders. Comparatively, 2.8% of Perion Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares DHI Group and Perion Network”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHI Group	$127.83 million	0.79	-$13.51 million	($0.30)	-7.45
Perion Network	$439.93 million	0.80	-$7.93 million	($0.18)	-47.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHI Group	-10.26%	10.91%	5.45%
Perion Network	-1.80%	3.38%	2.59%

Volatility and Risk

DHI Group has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DHI Group and Perion Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHI Group	1	1	1	1	2.50
Perion Network	1	1	3	0	2.40

DHI Group presently has a consensus price target of $6.25, suggesting a potential upside of 179.64%. Perion Network has a consensus price target of $14.17, suggesting a potential upside of 65.69%. Given DHI Group’s stronger consensus rating and higher probable upside, analysts plainly believe DHI Group is more favorable than Perion Network.

Summary

DHI Group beats Perion Network on 8 of the 15 factors compared between the two stocks.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.

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.