Financial Review: UMC (OTCMKTS:UMCN) versus IBEX (NASDAQ:IBEX)

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

Volatility & Risk

IBEX has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, UMC has a beta of 33.48, suggesting that its share price is 3,248% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$558.27 million	0.70	$36.86 million	$3.04	9.59
UMC	N/A	N/A	-$180,000.00	N/A	N/A

IBEX has higher revenue and earnings than UMC.

Insider and Institutional Ownership

81.2% of IBEX shares are owned by institutional investors. 3.4% of IBEX shares are owned by insiders. Comparatively, 16.8% of UMC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	7.35%	31.70%	15.65%
UMC	-1,022.22%	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	3	0	0	2.00
UMC	0	0	0	0	0.00

IBEX currently has a consensus target price of $35.00, indicating a potential upside of 20.03%. Given IBEX’s stronger consensus rating and higher possible upside, equities analysts clearly believe IBEX is more favorable than UMC.

Summary

IBEX beats UMC on 8 of the 10 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 UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.