Contrasting INNOVATE (NYSE:VATE) & Carlisle Companies (NYSE:CSL)

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

Institutional & Insider Ownership

89.5% of Carlisle Companies shares are owned by institutional investors. Comparatively, 34.3% of INNOVATE shares are owned by institutional investors. 1.4% of Carlisle Companies shares are owned by insiders. Comparatively, 55.5% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Carlisle Companies and INNOVATE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlisle Companies	15.48%	40.26%	15.14%
INNOVATE	-6.35%	N/A	-7.84%

Analyst Ratings

This is a summary of current recommendations for Carlisle Companies and INNOVATE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlisle Companies	1	5	4	0	2.30
INNOVATE	1	0	0	0	1.00

Carlisle Companies currently has a consensus target price of $386.67, suggesting a potential upside of 17.60%. Given Carlisle Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe Carlisle Companies is more favorable than INNOVATE.

Volatility & Risk

Carlisle Companies has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, INNOVATE has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Earnings & Valuation

This table compares Carlisle Companies and INNOVATE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlisle Companies	$5.00 billion	2.75	$1.31 billion	$17.63	18.65
INNOVATE	$1.11 billion	0.06	-$34.60 million	($5.56)	-0.94

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

Summary

Carlisle Companies beats INNOVATE on 12 of the 14 factors compared between the two stocks.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.

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.