Head to Head Contrast: INNOVATE (VATE) & Its Rivals

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

Valuation & Earnings

This table compares INNOVATE and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
INNOVATE	$1.52 billion	-$60.60 million	-2.89
INNOVATE Competitors	$9.60 billion	$456.60 million	-5,802.61

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for INNOVATE and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
INNOVATE Competitors	844	3454	7339	356	2.60

As a group, “Construction & Engineering” companies have a potential upside of 40.46%. Given INNOVATE’s peers stronger consensus rating and higher probable upside, analysts clearly believe INNOVATE has less favorable growth aspects than its peers.

Profitability

This table compares INNOVATE and its peers’ 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	-4.03%	2.50%	3.80%

Institutional and Insider Ownership

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

Volatility and Risk

INNOVATE has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, INNOVATE’s peers have a beta of 1.57, indicating that their average stock price is 57% more volatile than the S&P 500.

Summary

INNOVATE peers 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.