Contrasting IBEX (NASDAQ:IBEX) and Dalrada Financial (OTCMKTS:DFCO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	6.60%	28.26%	13.51%
Dalrada Financial	-121.21%	N/A	-104.62%

Risk and Volatility

IBEX has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Dalrada Financial has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for IBEX and Dalrada Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	4	0	0	2.00
Dalrada Financial	0	0	0	0	0.00

IBEX currently has a consensus price target of $34.50, indicating a potential downside of 7.73%. Given IBEX’s stronger consensus rating and higher possible upside, research analysts clearly believe IBEX is more favorable than Dalrada Financial.

Insider & Institutional Ownership

81.2% of IBEX shares are owned by institutional investors. 6.7% of IBEX shares are owned by company insiders. Comparatively, 7.1% of Dalrada Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares IBEX and Dalrada Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$558.27 million	0.89	$36.86 million	$2.39	15.64
Dalrada Financial	$20.30 million	0.34	-$24.65 million	($0.23)	-0.25

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

Summary

IBEX beats Dalrada Financial on 11 of the 13 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 Dalrada Financial

Dalrada Financial Corporation, together with its subsidiaries, operates as a technology and manufacturing company. It operates through Genefic, Dalrada Energy Services, Dalrada Precision Manufacturing, and Dalrada Technologies divisions. The Genefic division processes molecular diagnostic and antibody tests to support the diagnosis of COVID-19 and the detection of immune response to the virus; markets and sells traditional biologics and human cells, tissues, and cellular and tissue-based products; and provides prescription management, education, nursing, and total health solutions; distributes alcohol-free hand sanitizers, surface cleaners, laundry aides, antimicrobial solutions, electrostatic sprayers, face masks, gloves, and kits, as well as dispensers, stands, and ease of use packaging for the end consumers. It also manages and oversees wellness and rejuvenation clinics throughout Southern California that offers regenerative therapies, IV and injection services, cosmetic enhancements, and other health centric services; and provides trained nursing and medical assistants for hospitals and home health facilities, as well as pharmacy services. The Dalrada Energy Services division offers energy service solutions and general contracting services. The Dalrada Precision Manufacturing division engages in developing heat pump technology solution for the harvesting and recycling of energy; and manufactures and sells deep cleaners, parts washers, and degreasers to lift hydrocarbon-based dirt and grease from surfaces. It also designs, develops, manufactures, and services chemical and physical vapor deposition systems for the microchip and semiconductor industries. The Dalrada Technologies division provides software and technology solutions specialize in test engineering, accessibility engineering, product engineering, and application modernization. The company was incorporated in 1982 and is headquartered in Escondido, California.