Comparing IBEX (NASDAQ:IBEX) and APi Group (NYSE:APG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APi Group	3.70%	37.92%	14.19%
IBEX	7.35%	31.70%	15.65%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$7.91 billion	2.55	$302.00 million	($0.76)	-61.37
IBEX	$558.27 million	0.71	$36.86 million	$3.04	9.78

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

Risk and Volatility

APi Group has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, IBEX has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for APi Group and IBEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	2	7	1	2.90
IBEX	0	3	0	0	2.00

APi Group currently has a consensus target price of $48.57, indicating a potential upside of 4.15%. IBEX has a consensus target price of $35.00, indicating a potential upside of 17.77%. Given IBEX’s higher probable upside, analysts clearly believe IBEX is more favorable than APi Group.

Insider & Institutional Ownership

86.6% of APi Group shares are owned by institutional investors. Comparatively, 81.2% of IBEX shares are owned by institutional investors. 18.7% of APi Group shares are owned by insiders. Comparatively, 3.4% of IBEX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

APi Group beats IBEX on 10 of the 15 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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.