Cars.com Inc. (CARS) vs Perion Network Ltd (PERI)

Cars.com Inc. and Perion Network Ltd are both Internet Content & Information companies. Cars.com Inc. is the larger, with a market value of $547.6M against $357.9M — 1.5× the size. Perion Network Ltd has negative trailing earnings, so its P/E is not meaningful; Cars.com Inc. trades at 17.6×. Perion Network Ltd grew revenue faster over the last twelve months: 2.86% against 1.08%. Cars.com Inc. has the higher net margin (4.73% vs −2.95%) and the higher return on invested capital (6.05% vs −3.19%). Across the 20 metrics below, Cars.com Inc. leads on 11 and Perion Network Ltd on 9.

Valuation

Metric CARS PERI Internet Content & Information median
P/E 17.60 n/m 11.54
P/S 0.79 0.74 0.86
P/B 1.29 0.52 1.20
Price to free cash flow 4.17 9.12 9.63
EV/EBITDA 6.34 61.58 8.68
EV/Sales 1.39 0.17 1.18
Earnings yield 5.68% (3.89%) (2.42%)
Free cash flow yield 23.99% 10.97% 2.27%

Profitability

Metric CARS PERI Internet Content & Information median
Gross margin 67.10% 88.57% 66.84%
Operating margin 11.45% (4.14%) (3.41%)
Net margin 4.73% (2.95%) (3.02%)
Free cash flow margin 18.86% 8.13% 1.75%
Return on equity 7.40% (1.96%) 0.00%
Return on assets 3.30% (1.46%) (0.36%)
Return on invested capital 6.05% (3.19%) 0.00%

Growth

Metric CARS PERI Internet Content & Information median
Revenue growth (TTM) 1.08% 2.86% 2.65%
EPS growth (last fiscal year) (55.56%) (176.00%) 34.45%
Revenue growth, 5-year CAGR 5.73% 6.04% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CARS PERI Internet Content & Information median
Debt to equity 1.01 0.00 0.01
Current ratio 2.00 2.53 1.82
Net debt to EBITDA 2.57 (137.89) (0.48)

Dividend

Metric CARS PERI Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric CARS PERI Internet Content & Information median
Market cap 547.64m 357.91m 318.52m

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