Perion Network (NASDAQ:PERI) & Sinclair (NASDAQ:SBGI) Head-To-Head Comparison

Perion Network (NASDAQ:PERI) and Sinclair (NASDAQ:SBGI) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$439.93 million	0.77	-$7.93 million	($0.35)	-24.74
Sinclair	$3.17 billion	0.28	-$112.00 million	$0.75	16.52

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

Profitability

This table compares Perion Network and Sinclair’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%
Sinclair	1.60%	-16.09%	-0.95%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	1	1	3	1	2.67
Sinclair	2	2	2	0	2.00

Perion Network currently has a consensus target price of $13.83, indicating a potential upside of 59.74%. Sinclair has a consensus target price of $19.40, indicating a potential upside of 56.58%. Given Perion Network’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Perion Network is more favorable than Sinclair.

Institutional & Insider Ownership

68.1% of Perion Network shares are owned by institutional investors. Comparatively, 41.7% of Sinclair shares are owned by institutional investors. 2.8% of Perion Network shares are owned by company insiders. Comparatively, 42.1% of Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Perion Network has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Sinclair has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

Perion Network beats Sinclair on 10 of the 15 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 Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.