Perion Network (NASDAQ:PERI – Get Free Report) and Izea Worldwide (NASDAQ:IZEA – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Perion Network and Izea Worldwide, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perion Network | 1 | 1 | 4 | 0 | 2.50 |
| Izea Worldwide | 2 | 0 | 0 | 0 | 1.00 |
Perion Network currently has a consensus target price of $13.88, indicating a potential upside of 49.03%. Given Perion Network’s stronger consensus rating and higher possible upside, research analysts clearly believe Perion Network is more favorable than Izea Worldwide.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perion Network | $439.93 million | 0.83 | -$7.93 million | ($0.35) | -26.60 |
| Izea Worldwide | $31.24 million | 1.67 | $40,000.00 | ($0.14) | -21.36 |
Izea Worldwide has lower revenue, but higher earnings than Perion Network. Perion Network is trading at a lower price-to-earnings ratio than Izea Worldwide, indicating that it is currently the more affordable of the two stocks.
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, Izea Worldwide has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
Insider and Institutional Ownership
68.1% of Perion Network shares are held by institutional investors. Comparatively, 15.6% of Izea Worldwide shares are held by institutional investors. 2.8% of Perion Network shares are held by company insiders. Comparatively, 6.5% of Izea Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Perion Network and Izea Worldwide’s 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% |
| Izea Worldwide | -9.36% | -5.10% | -4.41% |
Summary
Perion Network beats Izea Worldwide on 8 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 Izea Worldwide
IZEA Worldwide, Inc., together with its subsidiaries, offers software and professional services to connect brands and content creators in North America, the Asia Pacific, and internationally. The company offers IZEA Flex, its flagship platform for managing enterprise influencer marketing; and comprehensive expense management service to track and manage off-platform expenses related to influencer marketing campaigns. It also operates The Creator Marketplace on IZEA.com that provides creators tools to present their work to marketers. In addition, the company provides management of content workflow, creator search and targeting, bidding, analytics, and payment processing services. It primarily sells influencer marketing and custom content campaigns through client development team and platforms. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Orlando, Florida.
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