Head-To-Head Survey: Optimum Communications (NYSE:OPTU) versus Perion Network (NASDAQ:PERI)

Perion Network (NASDAQ:PERI) and Optimum Communications (NYSE:OPTU) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Perion Network and Optimum Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perion Network	-2.95%	2.43%	1.81%
Optimum Communications	-58.15%	N/A	-0.70%

Earnings & Valuation

This table compares Perion Network and Optimum Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$436.22 million	0.82	-$7.93 million	($0.35)	-26.26
Optimum Communications	$8.59 billion	0.03	-$1.87 billion	($10.39)	-0.10

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

Insider and Institutional Ownership

68.1% of Perion Network shares are owned by institutional investors. Comparatively, 54.8% of Optimum Communications shares are owned by institutional investors. 2.8% of Perion Network shares are owned by insiders. Comparatively, 43.4% of Optimum Communications shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Perion Network and Optimum Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	1	1	4	0	2.50
Optimum Communications	4	5	0	0	1.56

Perion Network currently has a consensus price target of $13.88, indicating a potential upside of 50.98%. Optimum Communications has a consensus price target of $0.92, indicating a potential downside of 13.11%. Given Perion Network’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Perion Network is more favorable than Optimum Communications.

Volatility and Risk

Perion Network has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Summary

Perion Network beats Optimum Communications on 10 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 Optimum Communications

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.