Reviewing IBEX (NASDAQ:IBEX) and Cintas (NASDAQ:CTAS)

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

Volatility & Risk

Cintas has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, IBEX has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cintas	17.54%	40.41%	19.17%
IBEX	6.60%	28.26%	13.51%

Earnings and Valuation

This table compares Cintas and IBEX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cintas	$10.34 billion	7.29	$1.81 billion	$4.41	42.51
IBEX	$558.27 million	0.87	$36.86 million	$2.39	15.31

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

Institutional & Insider Ownership

63.5% of Cintas shares are owned by institutional investors. Comparatively, 81.2% of IBEX shares are owned by institutional investors. 14.9% of Cintas shares are owned by company insiders. Comparatively, 6.7% of IBEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cintas	2	4	6	1	2.46
IBEX	0	4	0	0	2.00

Cintas presently has a consensus target price of $222.09, suggesting a potential upside of 18.48%. IBEX has a consensus target price of $34.50, suggesting a potential downside of 5.74%. Given Cintas’ stronger consensus rating and higher probable upside, equities analysts plainly believe Cintas is more favorable than IBEX.

Summary

Cintas beats IBEX on 14 of the 15 factors compared between the two stocks.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. In addition, the company offers first aid and safety services, and fire protection products and services. It provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. The company was founded in 1968 and is based in Cincinnati, Ohio. Cintas Corporation was formerly a subsidiary of Cintas Corporation.

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.