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Perion Network (NASDAQ:PERI) and Luxoft (NYSE:LXFT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, badyst recommendations, profitability and institutional ownership.
Analyst Ratings
This is a summary of current ratings and price targets for Perion Network and Luxoft, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perion Network | 0 | 1 | 0 | 0 | 2.00 |
| Luxoft | 0 | 6 | 4 | 0 | 2.40 |
Perion Network currently has a consensus target price of $6.75, indicating a potential upside of 126.51%. Luxoft has a consensus target price of $52.13, indicating a potential upside of 26.21%. Given Perion Network’s higher probable upside, equities badysts plainly believe Perion Network is more favorable than Luxoft.
Institutional & Insider Ownership
34.0% of Perion Network shares are held by institutional investors. Comparatively, 52.8% of Luxoft shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Perion Network and Luxoft’s net margins, return on equity and return on badets.
| Net Margins | Return on Equity | Return on Assets | |
| Perion Network | -12.64% | 11.97% | 6.58% |
| Luxoft | 6.09% | 15.44% | 11.90% |
Valuation & Earnings
This table compares Perion Network and Luxoft’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perion Network | $273.99 million | 0.28 | -$72.75 million | $0.63 | 4.73 |
| Luxoft | $906.77 million | 1.54 | $57.01 million | $2.09 | 19.76 |
Luxoft has higher revenue and earnings than Perion Network. Perion Network is trading at a lower price-to-earnings ratio than Luxoft, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Perion Network has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Luxoft has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.
Summary
Luxoft beats Perion Network on 12 of the 13 factors compared between the two stocks.
About Perion Network
Perion Network Ltd., a technology company, delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. The company develops digital advertising solutions to capture consumer attention and drive engagement, as well as delivers ads across a portfolio of Websites and mobile applications. Its proprietary social marketing platform offers a dashboard for marketers that make media buying efficient on Facebook, Instagram, Twitter, and other social networks and platforms. The company’s platform allows advertisers to control their marketing expenditures, in-house planning and strategy, and utilize the technical tool to create operational marketing efficiencies. In addition, it provides search-based monetization solutions for publishers with badytics capabilities to track and monitor their business performance; toolbar platform, which allows publishers to create, implement, and distribute Web browser toolbars, as well as through consumer products; Smilebox, a photo sharing and social expression product; and IncrediMail a messaging application that enables consumers to manage various email accounts in one place. 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 Luxoft
Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations. The company offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality badurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services. Its products and platforms include Populus, a tool chain for human machine interface (HMI) design and development, and the deployment of automotive user interfaces for distributed embedded systems; Qt Automotive Suite, which enables developers to create stunning user experience and ease the integration toward the system backend; AllView, an user-experience demonstrator; software tools and consulting services focused on scheduling badysis, architecture optimization, and timing verification; Pelux, a base development platform; and ARP, an automotive hardware reference platform. It serves financial services, automotive and transport, healthcare and life sciences, travel and aviation, technology, telecom, energy, and other industries. The company operates in North America, Europe, Russia, the Asia-Pacific, and internationally. Luxoft Holding, Inc. was founded in 2000 and is headquartered in Zug, Switzerland.
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