IBEX (NASDAQ:IBEX) and BrightView (NYSE:BV) Head-To-Head Review

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BrightView and IBEX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightView	3	2	2	2	2.33
IBEX	0	3	0	0	2.00

BrightView presently has a consensus target price of $14.68, indicating a potential upside of 29.07%. IBEX has a consensus target price of $35.00, indicating a potential upside of 24.96%. Given BrightView’s stronger consensus rating and higher possible upside, equities analysts clearly believe BrightView is more favorable than IBEX.

Valuation and Earnings

This table compares BrightView and IBEX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightView	$2.69 billion	0.40	$56.00 million	($0.02)	-568.80
IBEX	$603.27 million	0.62	$36.86 million	$3.04	9.21

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BrightView	1.90%	7.85%	2.98%
IBEX	7.35%	31.70%	15.65%

Insider and Institutional Ownership

92.4% of BrightView shares are owned by institutional investors. Comparatively, 81.2% of IBEX shares are owned by institutional investors. 2.8% of BrightView shares are owned by insiders. Comparatively, 3.4% of IBEX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

BrightView has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, IBEX has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Summary

BrightView beats IBEX on 8 of the 15 factors compared between the two stocks.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.

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.