Reviewing IBEX (NASDAQ:IBEX) & Cheer (NASDAQ:CHR)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cheer and IBEX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	N/A
IBEX	0	3	2	0	2.40

IBEX has a consensus price target of $19.20, indicating a potential upside of 20.60%. Given IBEX’s higher probable upside, analysts clearly believe IBEX is more favorable than Cheer.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
IBEX	5.57%	20.23%	10.68%

Insider and Institutional Ownership

18.5% of Cheer shares are owned by institutional investors. Comparatively, 81.2% of IBEX shares are owned by institutional investors. 41.7% of Cheer shares are owned by insiders. Comparatively, 20.8% of IBEX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cheer and IBEX’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheer	$152.33 million	0.16	$30.48 million	N/A	N/A
IBEX	$523.12 million	0.52	$31.58 million	$1.53	10.41

IBEX has higher revenue and earnings than Cheer.

Volatility and Risk

Cheer has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, IBEX has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

IBEX beats Cheer on 10 of the 11 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

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.