Critical Contrast: IBEX (NASDAQ:IBEX) vs. Mitie Group (OTCMKTS:MITFY)

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

Insider & Institutional Ownership

81.2% of IBEX shares are held by institutional investors. Comparatively, 0.2% of Mitie Group shares are held by institutional investors. 6.7% of IBEX shares are held by insiders. Comparatively, 0.8% of Mitie Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares IBEX and Mitie Group’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%
Mitie Group	N/A	N/A	N/A

Risk and Volatility

IBEX has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Mitie Group has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for IBEX and Mitie Group, as reported by MarketBeat.com.

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

IBEX presently has a consensus price target of $27.00, indicating a potential downside of 8.57%. Given IBEX’s higher probable upside, equities analysts plainly believe IBEX is more favorable than Mitie Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$508.57 million	0.78	$33.65 million	$2.29	12.90
Mitie Group	$6.48 billion	0.38	$129.38 million	N/A	N/A

Mitie Group has higher revenue and earnings than IBEX.

Summary

IBEX beats Mitie Group on 7 of the 12 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 Mitie Group

Mitie Group plc, together with its subsidiaries, provides facilities management and professional services in the United Kingdom and internationally. The company operates in four segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities. The company provides decarbonization, electrical grid connections, emission intelligence, energy and carbon, EV fleets, and heat solutions, as well as solar energy; cleaning and hygiene, engineering maintenance, integrated facilities management, landscape, and waste management services; project and workplace services; and Fire & security systems, front of house, intelligence, vetting, and security guarding service. It serves to financial, professional, life science, manufacturing, media, telecom and tech, retail, shopping centres, transport, utilities, central and local government, critical environment, defence, education, healthcare, and justice and immigration sectors. The company was incorporated in 1936 and is headquartered in London, the United Kingdom.