Head to Head Analysis: China Merchants Holdings International (OTCMKTS:CMHHY) and INNOVATE (NYSE:VATE)

INNOVATE (NYSE:VATE) and China Merchants Holdings International (OTCMKTS:CMHHY) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for INNOVATE and China Merchants Holdings International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
China Merchants Holdings International	0	0	0	0	0.00

Valuation and Earnings

This table compares INNOVATE and China Merchants Holdings International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.11 billion	0.06	-$34.60 million	($5.56)	-0.88
China Merchants Holdings International	$1.52 billion	N/A	$1.02 billion	N/A	N/A

China Merchants Holdings International has higher revenue and earnings than INNOVATE.

Profitability

This table compares INNOVATE and China Merchants Holdings International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-6.35%	N/A	-7.84%
China Merchants Holdings International	N/A	N/A	N/A

Institutional and Insider Ownership

34.3% of INNOVATE shares are owned by institutional investors. 55.5% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

INNOVATE has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, China Merchants Holdings International has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

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.

About China Merchants Holdings International

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Brazil, Hong Kong, Taiwan, and internationally. The company operates through Ports Operation, Bonded Logistics Operation, and Other Operations segments. It engages in the container, and bulk and general cargo terminal operation; logistic park operation, ports transportation, and airport cargo handling; and property development, holding, and investment activities. The company also provides container related logistics services; financial services; and port development, management, and operation services. In addition, it operates berths and tugboats; and holds various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong.