Premium Catering (NASDAQ:PC – Get Free Report) and IBEX (NASDAQ:IBEX – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares Premium Catering and IBEX”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Premium Catering | $3.35 million | 5.81 | -$4.24 million | N/A | N/A |
| IBEX | $579.74 million | 0.88 | $36.86 million | $2.78 | 13.68 |
Volatility and Risk
Premium Catering has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, IBEX has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Institutional and Insider Ownership
81.2% of IBEX shares are owned by institutional investors. 3.4% of IBEX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Premium Catering and IBEX, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Premium Catering | 1 | 0 | 0 | 0 | 1.00 |
| IBEX | 0 | 2 | 1 | 0 | 2.33 |
IBEX has a consensus target price of $35.00, suggesting a potential downside of 7.94%. Given IBEX’s stronger consensus rating and higher probable upside, analysts clearly believe IBEX is more favorable than Premium Catering.
Profitability
This table compares Premium Catering and IBEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Premium Catering | N/A | N/A | N/A |
| IBEX | 7.14% | 31.94% | 14.78% |
Summary
IBEX beats Premium Catering on 10 of the 12 factors compared between the two stocks.
About Premium Catering
Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.
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.
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