Reviewing IBEX (NASDAQ:IBEX) and Concentrix (NASDAQ:CNXC)

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

Analyst Ratings

This is a breakdown of recent ratings for IBEX and Concentrix, as provided by MarketBeat.

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

IBEX currently has a consensus target price of $27.00, indicating a potential downside of 10.66%. Concentrix has a consensus target price of $66.75, indicating a potential upside of 28.19%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts clearly believe Concentrix is more favorable than IBEX.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	6.93%	25.51%	12.67%
Concentrix	2.54%	16.31%	5.56%

Earnings & Valuation

This table compares IBEX and Concentrix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$508.57 million	0.79	$33.65 million	$2.29	13.20
Concentrix	$9.62 billion	0.34	$251.22 million	$3.64	14.30

Concentrix has higher revenue and earnings than IBEX. IBEX is trading at a lower price-to-earnings ratio than Concentrix, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

81.2% of IBEX shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 6.7% of IBEX shares are owned by company insiders. Comparatively, 3.2% of Concentrix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

IBEX has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Summary

Concentrix beats IBEX on 9 of the 15 factors compared between the two stocks.

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.

About Concentrix

Concentrix Corporation engages in the provision of technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services, across various channels of communication, such as voice, chat, email, social media, asynchronous messaging, and custom applications. It also offers customer lifecycle management; customer experience/user experience strategy and design; analytics and actionable insights; digital transformation services that design and engineer CX solutions to enable efficient customer self-service and build customer loyalty; customer engagement solutions and services that address the entirety of the customer lifecycle; AI technology that can intelligently act on customer intent to improve customer experience with non-human engagement; voice of the customer and analytics solutions to gather and analyze customer feedback to foster loyalty to, and growth with, clients; analytics and consulting solutions that synthesize data and provide professional insight to improve clients’ customer experience strategies; vertical business process outsourcing (BPO) services; and back office BPO services that support clients in non-customer facing areas. The company’s clients include technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, healthcare, and others, as well as global IPOs, social brands, and banks. Concentrix Corporation was founded in 2004 and is based in Newark, California.