Head to Head Comparison: IBEX (NASDAQ:IBEX) & Skillz (NYSE:SKLZ)

Skillz (NYSE:SKLZ) and IBEX (NASDAQ:IBEX) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

19.4% of Skillz shares are owned by institutional investors. Comparatively, 81.2% of IBEX shares are owned by institutional investors. 30.4% of Skillz shares are owned by company insiders. Comparatively, 6.7% of IBEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skillz	-40.87%	-38.95%	-20.10%
IBEX	6.57%	22.54%	12.38%

Analyst Recommendations

This is a breakdown of current ratings for Skillz and IBEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	0	1	1	0	2.50
IBEX	0	2	2	0	2.50

Skillz presently has a consensus target price of $10.75, indicating a potential upside of 61.44%. IBEX has a consensus target price of $21.25, indicating a potential downside of 3.89%. Given Skillz’s higher probable upside, equities research analysts plainly believe Skillz is more favorable than IBEX.

Volatility and Risk

Skillz has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500. Comparatively, IBEX has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$150.11 million	0.77	-$101.36 million	($2.25)	-2.96
IBEX	$508.57 million	0.73	$33.65 million	$1.89	11.70

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

Summary

IBEX beats Skillz on 8 of the 12 factors compared between the two stocks.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

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.