La Rosa (NASDAQ:LRHC – Get Free Report) and Federal Signal (NYSE:FSS – Get Free Report) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Insider and Institutional Ownership
7.6% of La Rosa shares are held by institutional investors. Comparatively, 92.7% of Federal Signal shares are held by institutional investors. 23.8% of La Rosa shares are held by insiders. Comparatively, 3.3% of Federal Signal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
La Rosa has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500. Comparatively, Federal Signal has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La Rosa | 1 | 0 | 0 | 0 | 1.00 |
| Federal Signal | 0 | 4 | 2 | 0 | 2.33 |
Federal Signal has a consensus price target of $123.00, suggesting a potential upside of 7.23%. Given Federal Signal’s stronger consensus rating and higher probable upside, analysts plainly believe Federal Signal is more favorable than La Rosa.
Profitability
This table compares La Rosa and Federal Signal’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% |
| Federal Signal | 11.47% | 19.50% | 12.93% |
Valuation and Earnings
This table compares La Rosa and Federal Signal”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La Rosa | $69.45 million | 0.01 | -$14.45 million | ($466.19) | 0.00 |
| Federal Signal | $1.86 billion | 3.75 | $216.30 million | $3.83 | 29.95 |
Federal Signal has higher revenue and earnings than La Rosa. La Rosa is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.
Summary
Federal Signal beats La Rosa on 12 of the 14 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 Federal Signal
Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.
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