Quanta Services (NYSE:PWR – Get Free Report) and INNOVATE (NYSE:VATE – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
90.5% of Quanta Services shares are held by institutional investors. Comparatively, 34.3% of INNOVATE shares are held by institutional investors. 0.6% of Quanta Services shares are held by insiders. Comparatively, 57.7% of INNOVATE shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Quanta Services and INNOVATE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quanta Services | 3 | 7 | 22 | 1 | 2.64 |
| INNOVATE | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Quanta Services and INNOVATE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quanta Services | 4.03% | 20.55% | 7.34% |
| INNOVATE | -1.48% | N/A | -2.35% |
Earnings and Valuation
This table compares Quanta Services and INNOVATE”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quanta Services | $28.48 billion | 3.50 | $1.03 billion | $8.73 | 75.96 |
| INNOVATE | $1.25 billion | 0.08 | -$60.60 million | ($1.87) | -3.97 |
Quanta Services has higher revenue and earnings than INNOVATE. INNOVATE is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Quanta Services has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, INNOVATE has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.
Summary
Quanta Services beats INNOVATE on 13 of the 15 factors compared between the two stocks.
About Quanta Services
Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.
About INNOVATE
INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. The Infrastructure segment provides industrial construction, structural steel, and facility maintenance services, such as fabrication and erection of structural steel and heavy steel plate services, and large-diameter water pipes and water storage tanks; fabrication of trusses and girders; and 3-D building information modeling and detailing for commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants. This segment also offers solutions for digital engineering, modeling and detailing, construction, and heavy equipment installation and facility services including maintenance, repair, and installation; and manufactures pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and customized products. The Life Sciences segment develops products to treat early osteoarthritis of the knee; and aesthetic and medical technologies for the skin. The Spectrum segment operates over-the-air broadcasting stations across the United States; and Azteca America, a Spanish-language broadcast network. The company was formerly known as HC2 Holdings, Inc. and changed its name to INNOVATE Corp. in September 2021. The company was incorporated in 1994 and is headquartered in New York, New York.
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