Head-To-Head Survey: IBEX (NASDAQ:IBEX) and CorVel (NASDAQ:CRVL)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$508.57 million	0.74	$33.65 million	$2.29	12.32
CorVel	$895.59 million	5.89	$95.17 million	$1.84	55.80

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

Institutional and Insider Ownership

81.2% of IBEX shares are owned by institutional investors. Comparatively, 51.4% of CorVel shares are owned by institutional investors. 6.7% of IBEX shares are owned by company insiders. Comparatively, 47.6% of CorVel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for IBEX and CorVel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	3	0	0	2.00
CorVel	0	0	0	0	0.00

IBEX presently has a consensus target price of $27.00, indicating a potential downside of 4.32%. Given IBEX’s stronger consensus rating and higher probable upside, equities research analysts plainly believe IBEX is more favorable than CorVel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	6.93%	25.51%	12.67%
CorVel	10.63%	32.55%	18.22%

Volatility & Risk

IBEX has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, CorVel has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

CorVel beats IBEX on 9 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 CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.