IBEX (NASDAQ:IBEX) and Skillz (NYSE:SKLZ) Head to Head Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$508.57 million	0.86	$33.65 million	$2.13	12.18
Skillz	$150.11 million	0.74	-$101.36 million	($2.25)	-2.84

IBEX has higher revenue and earnings than Skillz. Skillz 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 IBEX and Skillz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IBEX	7.08%	23.13%	12.90%
Skillz	-40.87%	-38.95%	-20.10%

Analyst Ratings

This is a breakdown of recent recommendations for IBEX and Skillz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	1	1	0	2.50
Skillz	0	1	1	0	2.50

IBEX currently has a consensus target price of $25.00, indicating a potential downside of 3.66%. Skillz has a consensus target price of $10.75, indicating a potential upside of 68.23%. Given Skillz’s higher possible upside, analysts plainly believe Skillz is more favorable than IBEX.

Institutional & Insider Ownership

81.2% of IBEX shares are held by institutional investors. Comparatively, 19.4% of Skillz shares are held by institutional investors. 6.7% of IBEX shares are held by insiders. Comparatively, 30.4% of Skillz shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

IBEX has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Skillz has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.

Summary

IBEX beats Skillz on 9 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 Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.