Head to Head Review: Perion Network (NASDAQ:PERI) and Similarweb (NYSE:SMWB)

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

Volatility & Risk

Perion Network has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perion Network	-1.12%	2.68%	2.13%
Similarweb	-10.84%	-88.03%	-9.36%

Valuation & Earnings

This table compares Perion Network and Similarweb”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	$424.10 million	1.02	$12.61 million	($0.12)	-80.67
Similarweb	$249.91 million	3.09	-$11.46 million	($0.35)	-25.96

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Perion Network and Similarweb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	1	1	4	0	2.50
Similarweb	1	1	9	0	2.73

Perion Network presently has a consensus price target of $14.00, indicating a potential upside of 44.63%. Similarweb has a consensus price target of $14.88, indicating a potential upside of 63.73%. Given Similarweb’s stronger consensus rating and higher probable upside, analysts plainly believe Similarweb is more favorable than Perion Network.

Institutional and Insider Ownership

68.1% of Perion Network shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 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 will outperform the market over the long term.

Summary

Perion Network beats Similarweb on 9 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 Similarweb

Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.