Critical Survey: Rediff.com India (OTCMKTS:REDFY) versus Perion Network (NASDAQ:PERI)

Rediff.com India (OTCMKTS:REDFY) and Perion Network (NASDAQ:PERI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Rediff.com India and Perion Network, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rediff.com India	0	0	0	0	0.00
Perion Network	1	0	4	0	2.60

Perion Network has a consensus price target of $14.13, suggesting a potential upside of 37.40%. Given Perion Network’s stronger consensus rating and higher probable upside, analysts plainly believe Perion Network is more favorable than Rediff.com India.

Risk and Volatility

Rediff.com India has a beta of 15.61, meaning that its stock price is 1,461% more volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rediff.com India and Perion Network”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rediff.com India	N/A	N/A	N/A	N/A	N/A
Perion Network	$439.93 million	0.91	-$7.93 million	($0.18)	-57.11

Rediff.com India has higher earnings, but lower revenue than Perion Network.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rediff.com India	N/A	N/A	N/A
Perion Network	-1.80%	3.38%	2.59%

Insider & Institutional Ownership

68.1% of Perion Network shares are held by institutional investors. 70.7% of Rediff.com India shares are held by company insiders. Comparatively, 2.8% of Perion Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Perion Network beats Rediff.com India on 7 of the 10 factors compared between the two stocks.

About Rediff.com India

Rediff.com India Limited engages in the online business in India and to the global Indian community. The company delivers news and information, enterprise email services, online shopping marketplace, and internet-based local TV advertising platform; and online advertising services. Its websites consist of information relating to sports and cricket; life style and movies; content on news, business, and finance; and search facilities, as well as a range of community features, including as e-mail and shopping. The company delivers its services on PCs, tablets, and various mobile platforms. Rediff.com India Limited was incorporated in 1996 and is headquartered in Mumbai, India.

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.