Wolters Kluwer (OTCMKTS:WTKWY) and IBEX (NASDAQ:IBEX) Critical Survey

Wolters Kluwer (OTCMKTS:WTKWY) and IBEX (NASDAQ:IBEX) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares Wolters Kluwer and IBEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolters Kluwer	N/A	N/A	N/A
IBEX	6.93%	25.51%	12.67%

Analyst Recommendations

This is a summary of recent ratings and price targets for Wolters Kluwer and IBEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolters Kluwer	0	1	0	1	3.00
IBEX	0	3	0	0	2.00

IBEX has a consensus price target of $27.00, suggesting a potential downside of 7.25%. Given IBEX’s higher possible upside, analysts clearly believe IBEX is more favorable than Wolters Kluwer.

Volatility and Risk

Wolters Kluwer has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, IBEX has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Wolters Kluwer shares are held by institutional investors. Comparatively, 81.2% of IBEX shares are held by institutional investors. 6.7% of IBEX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Wolters Kluwer and IBEX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolters Kluwer	$6.40 billion	4.90	$1.17 billion	N/A	N/A
IBEX	$508.57 million	0.77	$33.65 million	$2.29	12.71

Wolters Kluwer has higher revenue and earnings than IBEX.

Summary

IBEX beats Wolters Kluwer on 7 of the 12 factors compared between the two stocks.

About Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

About IBEX

IBEX Limited provides end-to-end technology-enabled customer lifecycle experience solutions in the United States and internationally. The company products and services portfolio includes ibex Connect, that offers customer service, technical support, revenue generation, and other revenue generation outsourced back-office services through the CX model, which integrates voice, email, chat, SMS, social media, and other communication applications; ibex Digital, a customer acquisition solution that comprises digital marketing, e-commerce technology, and platform solutions; and ibex CX, a customer experience solution, which provides a suite of proprietary software tools to measure, monitor, and manage its clients' customer experience. It operates customer engagement and customer acquisition delivery centers. The company serves banking and financial services, delivery and logistics, health tech and wellness, high tech, retail and e-commerce, streaming and entertainment, travel and hospitality, and utility industries. The company was formerly known as IBEX Holdings Limited and changed its name to IBEX Limited in September 2019. IBEX Limited was incorporated in 2017 and is headquartered in Washington, District of Columbia. The company is a subsidiary of The Resource Group International Limited.