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

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

Institutional & Insider Ownership

9.9% of Rentokil Initial shares are held by institutional investors. Comparatively, 81.2% of IBEX shares are held by institutional investors. 3.4% of IBEX shares are held by 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.

Earnings & Valuation

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

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

Rentokil Initial has higher revenue and earnings than IBEX.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of recent recommendations for Rentokil Initial and IBEX, as reported by MarketBeat.com.

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

Rentokil Initial currently has a consensus target price of $34.00, indicating a potential upside of 13.52%. IBEX has a consensus target price of $35.00, indicating a potential downside of 9.28%. Given Rentokil Initial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rentokil Initial is more favorable than IBEX.

Profitability

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

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

Summary

Rentokil Initial beats IBEX on 8 of the 13 factors compared between the two stocks.

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.

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.