Reviewing IBEX (NASDAQ:IBEX) and UMC (OTCMKTS:UMCN)

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

Risk & Volatility

IBEX has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, UMC has a beta of 33.49, suggesting that its stock price is 3,249% 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	0.67	$36.86 million	$3.04	9.13
UMC	N/A	N/A	-$180,000.00	N/A	N/A

IBEX has higher revenue and earnings than UMC.

Analyst Ratings

This is a summary of current recommendations and price targets for IBEX and UMC, as provided by MarketBeat.com.

	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 price target of $35.00, indicating a potential upside of 26.04%. Given IBEX’s stronger consensus rating and higher probable upside, analysts plainly believe IBEX is more favorable than UMC.

Institutional and Insider Ownership

81.2% of IBEX shares are owned by institutional investors. 3.4% of IBEX shares are owned by company insiders. Comparatively, 16.8% of UMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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

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.