CooTek (Cayman) (NYSE:CTK) & IBEX (NASDAQ:IBEX) Critical Review

CooTek (Cayman) (NYSE:CTK) and IBEX (NASDAQ:IBEX) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for CooTek (Cayman) and IBEX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CooTek (Cayman) 0 0 0 0 N/A
IBEX 0 0 6 0 3.00

IBEX has a consensus price target of $22.20, indicating a potential upside of 12.41%. Given IBEX’s higher probable upside, analysts plainly believe IBEX is more favorable than CooTek (Cayman).

Profitability

This table compares CooTek (Cayman) and IBEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CooTek (Cayman) -12.02% -4,961.81% -44.69%
IBEX -1.14% 33.09% 7.77%

Valuation and Earnings

This table compares CooTek (Cayman) and IBEX’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CooTek (Cayman) $441.51 million 0.26 -$47.37 million ($0.77) -2.43
IBEX $405.14 million 0.89 $7.77 million $0.84 23.27

IBEX has lower revenue, but higher earnings than CooTek (Cayman). CooTek (Cayman) is trading at a lower price-to-earnings ratio than IBEX, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

6.9% of CooTek (Cayman) shares are held by institutional investors. Comparatively, 23.8% of IBEX shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IBEX beats CooTek (Cayman) on 9 of the 11 factors compared between the two stocks.

CooTek (Cayman) Company Profile

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, the United States, and internationally. Its primary product is TouchPal Smart Input, an input method for mobile devices that supports approximately 110 languages. The company also offers Fengdu Novel, a mobile application that provides users with free online novels; Fengdu Audiobooks; and short video series based on Fengdu Literature Platform content and IP resources. In addition, it provides casual games, including simulation games, such as Farm Hero and Idle Land King Tycoon; puzzle games comprising Hi Hamster; and educational games, such as Puzzle No. 1 and Idiom Hero. Further, the company offers fitness applications comprising Walk Walk; Drink Water Reminder that helps users drink an appropriate amount of water on a daily basis; Happy Jogging, a free pedometer mobile application; and Hailaidian, a mobile application that provides pictures, videos, and music to decorate the call interface and help users have fun when receiving phone calls. It distributes its products and acquires users primarily through user downloads from digital distribution platforms and pre-installations on mobile devices. CooTek (Cayman) Inc. was founded in 2008 and is headquartered in Shanghai, the People's Republic of China.

IBEX Company Profile

IBEX Limited provides end-to-end technology-enabled customer lifecycle experience solutions in the United States and internationally. The company provides ibex Connect, a customer engagement solution comprises customer service, technical support, and other value-added outsourced back office services through voice, email, chat, SMS, social media and other communication applications; ibex Digital, a customer acquisition solution that offers search, social, and display advertising capabilities; and ibex CX, a customer experience solution, which provides a comprehensive suite of proprietary software tools to measure, monitor and manage its clients' customer experience. It also operates a range of multi-tenant and dedicated platforms; and offers ibex Wave X, CLX Test Kitchen, and The CLX Product Cloud, a flexible and modular toolset of integrated products. As of June 30, 2020, the company operated 25 customer engagement and three customer acquisition delivery centers. It serves telecommunications and cable, technology, retail, healthcare, financial services, and utilities markets. The company was founded in 2017 and is headquartered in Washington, District of Columbia. IBEX Limited operates as a subsidiary of Resource Group International Limited.

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