Novation Companies (OTCMKTS:NOVC) and Jones Lang LaSalle (NYSE:JLL) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Volatility & Risk
Novation Companies has a beta of -1.16, meaning that its share price is 216% less volatile than the S&P 500. Comparatively, Jones Lang LaSalle has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.
Jones Lang LaSalle pays an annual dividend of $0.82 per share and has a dividend yield of 0.6%. Novation Companies does not pay a dividend. Jones Lang LaSalle pays out 9.0% of its earnings in the form of a dividend. Jones Lang LaSalle has raised its dividend for 7 consecutive years.
Earnings & Valuation
This table compares Novation Companies and Jones Lang LaSalle’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Novation Companies||$27.96 million||0.13||-$10.86 million||N/A||N/A|
|Jones Lang LaSalle||$7.93 billion||0.80||$254.20 million||$9.16||15.29|
Jones Lang LaSalle has higher revenue and earnings than Novation Companies.
This table compares Novation Companies and Jones Lang LaSalle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jones Lang LaSalle||2.59%||14.87%||5.69%|
Insider and Institutional Ownership
0.6% of Novation Companies shares are owned by institutional investors. Comparatively, 94.1% of Jones Lang LaSalle shares are owned by institutional investors. 17.3% of Novation Companies shares are owned by company insiders. Comparatively, 0.6% of Jones Lang LaSalle shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations for Novation Companies and Jones Lang LaSalle, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jones Lang LaSalle||0||3||4||0||2.57|
Jones Lang LaSalle has a consensus target price of $175.40, suggesting a potential upside of 25.27%. Given Jones Lang LaSalle’s higher possible upside, analysts clearly believe Jones Lang LaSalle is more favorable than Novation Companies.
Jones Lang LaSalle beats Novation Companies on 12 of the 14 factors compared between the two stocks.
About Novation Companies
Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia. It also owns a portfolio of mortgage securities. The company was formerly known as NovaStar Financial, Inc. and changed its name to Novation Companies, Inc. in May 2012. Novation Companies, Inc. was founded in 1996 and is based in Kansas City, Missouri.
About Jones Lang LaSalle
Jones Lang LaSalle Incorporated, a professional services company, provides commercial real estate and investment management services worldwide. It offers a range of real estate services, including agency leasing, project and development management/construction, capital markets, property management, corporate finance, real estate investment banking/merchant banking, energy and sustainability, research, facility management outsourcing, strategic consulting, technology solutions, advisory, investment management, tenant representation, lease administration, transaction management, logistics and supply-chain management, valuations, and mortgage origination and servicing. The company also provides investment management services to institutional and retail investors, including high-net-worth individuals. Jones Lang LaSalle Incorporated offers its services to real estate owners, occupiers, investors, and developers for various property types, including cultural, educational, government, healthcare, laboratory, hotel, hospitality, and sports facilities; industrial and warehouse, office, and residential properties; retail and shopping malls; critical environment, data, transportation, and sort and fulfillment centers; infrastructure projects; and military housings. The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in March 1999. Jones Lang LaSalle Incorporated was founded in 1997 and is headquartered in Chicago, Illinois.
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