Analyzing INNOVATE (VATE) & Its Competitors

INNOVATE (NYSE:VATE) is one of 188 public companies in the “Construction & Engineering” industry, but how does it compare to its rivals? We will compare INNOVATE to related businesses based on the strength of its analyst recommendations, valuation, profitability, dividends, institutional ownership, earnings and risk.

Insider & Institutional Ownership

34.3% of INNOVATE shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 57.7% of INNOVATE shares are owned by company insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

INNOVATE has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500. Comparatively, INNOVATE’s rivals have a beta of 1.60, indicating that their average share price is 60% more volatile than the S&P 500.

Profitability

This table compares INNOVATE and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-1.48%	N/A	-2.35%
INNOVATE Competitors	-4.05%	2.62%	3.83%

Analyst Recommendations

This is a summary of recent ratings and price targets for INNOVATE and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
INNOVATE Competitors	846	3457	7344	359	2.60

As a group, “Construction & Engineering” companies have a potential upside of 42.07%. Given INNOVATE’s rivals stronger consensus rating and higher probable upside, analysts plainly believe INNOVATE has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares INNOVATE and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
INNOVATE	$1.25 billion	-$60.60 million	-2.91
INNOVATE Competitors	$10.73 billion	$456.60 million	-5,802.66

INNOVATE’s rivals have higher revenue and earnings than INNOVATE. INNOVATE is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

INNOVATE rivals beat INNOVATE on 9 of the 13 factors compared.

INNOVATE Company Profile

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.