Rentokil Initial (NYSE:RTO) & IBEX (NASDAQ:IBEX) Head to Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	7.14%	31.94%	14.78%
Rentokil Initial	N/A	N/A	N/A

Earnings and Valuation

This table compares IBEX and Rentokil Initial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$558.27 million	0.93	$36.86 million	$2.78	13.88
Rentokil Initial	$6.95 billion	2.18	$392.32 million	N/A	N/A

Rentokil Initial has higher revenue and earnings than IBEX.

Risk & Volatility

IBEX has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Rentokil Initial has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

81.2% of IBEX shares are held by institutional investors. Comparatively, 9.9% of Rentokil Initial shares are held by institutional investors. 3.4% of IBEX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for IBEX and Rentokil Initial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	3	1	0	2.25
Rentokil Initial	1	2	4	1	2.63

IBEX presently has a consensus price target of $35.00, suggesting a potential downside of 9.28%. Rentokil Initial has a consensus price target of $34.00, suggesting a potential upside of 13.52%. Given Rentokil Initial’s stronger consensus rating and higher probable upside, analysts clearly believe Rentokil Initial is more favorable than IBEX.

Summary

Rentokil Initial beats IBEX on 8 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 Rentokil Initial

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial customers. The company provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and maintenance of workwear and protective equipment. Further, the company offers property care services; and provides a range of specialist cleaning services, such as graffiti removal deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage cleaning, as well as specialist medical and hygiene services. Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom.