Critical Analysis: IBEX (NASDAQ:IBEX) & Worley (OTCMKTS:WYGPY)

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

Volatility & Risk

IBEX has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Worley has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$558.27 million	0.77	$36.86 million	$3.20	10.01
Worley	$7.28 billion	0.60	$264.87 million	N/A	N/A

Worley has higher revenue and earnings than IBEX.

Analyst Recommendations

This is a summary of recent recommendations for IBEX and Worley, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	2	0	0	2.00
Worley	0	1	1	0	2.50

IBEX currently has a consensus target price of $40.00, suggesting a potential upside of 24.92%. Given IBEX’s higher probable upside, equities research analysts clearly believe IBEX is more favorable than Worley.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	7.53%	31.50%	16.25%
Worley	N/A	N/A	N/A

Institutional and Insider Ownership

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

Summary

IBEX beats Worley 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 Worley

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide. The company offers digital, consulting, engineering and design, construction management, construction and fabrication, supply chain management, project management, and operation and maintenance services, as well as maintenance, modification, and operation services. It serves new energy, power, upstream and midstream, refining and chemicals, and infrastructure markets, as well as mining, minerals, and metals markets. The company was formerly known as WorleyParsons Limited and changed its name to Worley Limited in October 2019. The company was founded in 1893 and is based in Sydney, Australia.