Perion Network (NASDAQ:PERI – Get Free Report) and Tuniu (NASDAQ:TOUR – Get Free Report) 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, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Analyst Ratings
This is a breakdown of current ratings for Perion Network and Tuniu, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perion Network | 1 | 1 | 4 | 0 | 2.50 |
| Tuniu | 1 | 0 | 0 | 0 | 1.00 |
Perion Network currently has a consensus price target of $14.38, suggesting a potential upside of 46.44%. Given Perion Network’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Perion Network is more favorable than Tuniu.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perion Network | $498.29 million | 0.81 | $12.61 million | ($0.26) | -37.75 |
| Tuniu | $70.37 million | 1.21 | $10.57 million | $0.02 | 36.45 |
Perion Network has higher revenue and earnings than Tuniu. Perion Network is trading at a lower price-to-earnings ratio than Tuniu, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Perion Network and Tuniu’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% |
| Tuniu | 1.09% | 3.41% | 1.84% |
Volatility and Risk
Perion Network has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Institutional & Insider Ownership
68.1% of Perion Network shares are held by institutional investors. 2.8% of Perion Network shares are held by company insiders. Comparatively, 76.1% of Tuniu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
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 Tuniu
Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.
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