Critical Survey: Fathom (NASDAQ:FTHM) versus Innventure (NASDAQ:INV)

Fathom (NASDAQ:FTHMGet Free Report) and Innventure (NASDAQ:INVGet Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Risk & Volatility

Fathom has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, Innventure has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fathom and Innventure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fathom 1 0 0 1 2.50
Innventure 1 0 0 0 1.00

Fathom presently has a consensus target price of $2.50, indicating a potential upside of 444.19%. Innventure has a consensus target price of $8.00, indicating a potential upside of 40.11%. Given Fathom’s stronger consensus rating and higher probable upside, analysts plainly believe Fathom is more favorable than Innventure.

Profitability

This table compares Fathom and Innventure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fathom -4.83% -49.25% -25.17%
Innventure -5,225.19% -34.73% -27.36%

Earnings and Valuation

This table compares Fathom and Innventure”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fathom $420.48 million 0.04 -$20.31 million ($0.73) -0.63
Innventure $2.06 million 232.95 -$293.32 million ($2.82) -2.02

Fathom has higher revenue and earnings than Innventure. Innventure is trading at a lower price-to-earnings ratio than Fathom, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

55.5% of Fathom shares are owned by institutional investors. Comparatively, 56.0% of Innventure shares are owned by institutional investors. 16.4% of Fathom shares are owned by company insiders. Comparatively, 23.6% of Innventure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Fathom beats Innventure on 10 of the 14 factors compared between the two stocks.

About Fathom

(Get Free Report)

Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.

About Innventure

(Get Free Report)

Innventure Inc. founds, funds and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. Innventure Inc., formerly known as Learn CW Investment Corporation, is based in ORLANDO, Fla.

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