Premium Catering (NASDAQ:PC) & IBEX (NASDAQ:IBEX) Financial Review

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

Profitability

This table compares IBEX and Premium Catering’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%
Premium Catering	N/A	N/A	N/A

Valuation & Earnings

This table compares IBEX and Premium Catering”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	0.79	$36.86 million	$3.04	10.80
Premium Catering	$3.35 million	5.81	-$4.24 million	N/A	N/A

IBEX has higher revenue and earnings than Premium Catering.

Risk & Volatility

IBEX has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Premium Catering has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for IBEX and Premium Catering, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	3	0	0	2.00
Premium Catering	1	0	0	0	1.00

IBEX currently has a consensus price target of $35.00, suggesting a potential upside of 6.64%. Given IBEX’s stronger consensus rating and higher probable upside, equities analysts clearly believe IBEX is more favorable than Premium Catering.

Summary

IBEX beats Premium Catering on 9 of the 11 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 Premium Catering

Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.