If you look at rev, ebitda, npat etc. IPH is clearly the winner,...

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Wyrm

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21/11/22

16:12

Post #: 64898320
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Originally posted by prhb: ↑

So how are investors feeling about QIP versus the alternative of IPH?

Doing a rough as guts comparison, IPH is clearly the better performer on an NPAT to Revenue comparison, although that may be unfair, given the smaller size of QIP, and the larger impact of IT transformations in smaller companies (QIP Underying NPAT is 10% of revenue, versus IPH at 22%).

They are both growing in Asia, although QIP is later down that path than IPH.
IPH is continuing to acquire Patent companies in new countries (Smart & Biggar in Canada most recently), while QIP has taken an IT led approach with it's purchase of Sortify - which has given it entry to the UK market.

The dividend yield on QIP is a nice number, but that needs to be factored against the share price dropping by 20c from recent highs.
GS is neutral on IPH, with a target price of $10.90, but does not cover a minnow like QIP.

QIP is forecasting improving margins from its last report, saying some of the operating costs are temporary in nature.
I am feeling that QIP has been beaten down, and if able to deliver a reasonable report next time around, should see some decent share price appreciation in addition to 6.8% FF dividends.
Where would your money go?

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If you look at rev, ebitda, npat etc. IPH is clearly the winner, but you also need to compare the market caps (2B vs 130M). If we assume both are sound businesses then I would rather (and have) put my money in QIP. It has a higher return and more room for improvement. I think IPH will struggle to maintain a 25+ PE over the long term.

Last edited by Wyrm: 21/11/22

QIP Price at posting: 93.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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If you look at rev, ebitda, npat etc. IPH is clearly the winner,...

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