Analyzing Perion Network (NASDAQ:PERI) and LiveWorld (OTCMKTS:LVWD)

Perion Network (NASDAQ:PERI) and LiveWorld (OTCMKTS:LVWD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

68.1% of Perion Network shares are owned by institutional investors. 2.8% of Perion Network shares are owned by insiders. Comparatively, 16.3% of LiveWorld shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Perion Network and LiveWorld’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%
LiveWorld	2.97%	6.81%	3.98%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Perion Network and LiveWorld, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	0	2	3	0	2.60
LiveWorld	0	0	0	0	0.00

Perion Network currently has a consensus price target of $12.3750, suggesting a potential upside of 36.59%. Given Perion Network’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Perion Network is more favorable than LiveWorld.

Risk & Volatility

Perion Network has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, LiveWorld has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$498.29 million	0.82	$12.61 million	($0.12)	-75.50
LiveWorld	$11.35 million	N/A	$60,000.00	$0.01	14.00

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

Summary

Perion Network beats LiveWorld on 7 of the 13 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 LiveWorld

LiveWorld, Inc., a digital agency and software company, provides social media and technology solutions for pharmaceuticals, healthcare, and financial-travel service industries. It offers consulting, strategy, and creative solutions with human agents for moderation, engagement, customer care, and adverse events management, as well as conversation management software, and chatbots for digital campaigns and social media programs. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was incorporated in 1996 and is headquartered in Campbell, California.