Head-To-Head Survey: Parsons (NYSE:PSN) vs. IBEX (NASDAQ:IBEX)

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

Insider & Institutional Ownership

81.2% of IBEX shares are owned by institutional investors. Comparatively, 98.0% of Parsons shares are owned by institutional investors. 3.4% of IBEX shares are owned by company insiders. Comparatively, 1.3% of Parsons shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IBEX	7.19%	28.96%	15.36%
Parsons	2.50%	8.10%	3.75%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBEX	$644.08 million	0.89	$46.33 million	$3.13	13.80
Parsons	$6.36 billion	0.71	$241.14 million	$1.45	29.21

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for IBEX and Parsons, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBEX	0	2	1	0	2.33
Parsons	2	3	11	0	2.56

IBEX presently has a consensus target price of $42.00, suggesting a potential downside of 2.76%. Parsons has a consensus target price of $63.00, suggesting a potential upside of 48.73%. Given Parsons’ stronger consensus rating and higher probable upside, analysts plainly believe Parsons is more favorable than IBEX.

Volatility and Risk

IBEX has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Summary

Parsons beats IBEX on 8 of the 14 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 Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.