La Rosa (NASDAQ:LRHC – Get Free Report) and INNOVATE (NYSE:VATE – Get Free Report) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for La Rosa and INNOVATE, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La Rosa | 1 | 0 | 0 | 0 | 1.00 |
| INNOVATE | 1 | 0 | 0 | 0 | 1.00 |
Institutional and Insider Ownership
7.6% of La Rosa shares are owned by institutional investors. Comparatively, 34.3% of INNOVATE shares are owned by institutional investors. 23.8% of La Rosa shares are owned by insiders. Comparatively, 55.5% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La Rosa | $69.45 million | 0.00 | -$14.45 million | ($4,661.90) | 0.00 |
| INNOVATE | $1.11 billion | 0.05 | -$34.60 million | ($5.56) | -0.71 |
La Rosa has higher earnings, but lower revenue than INNOVATE. INNOVATE is trading at a lower price-to-earnings ratio than La Rosa, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares La Rosa and INNOVATE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La Rosa | -35.59% | N/A | -91.73% |
| INNOVATE | -6.35% | N/A | -7.84% |
Volatility and Risk
La Rosa has a beta of 3.09, suggesting that its share price is 209% more volatile than the S&P 500. Comparatively, INNOVATE has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
Summary
INNOVATE beats La Rosa on 7 of the 10 factors compared between the two stocks.
About La Rosa
La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.
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.
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