Head to Head Comparison: INNOVATE (NYSE:VATE) & Fundamental Global (NASDAQ:FGF)

INNOVATE (NYSE:VATE) and Fundamental Global (NASDAQ:FGF) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Risk & Volatility

INNOVATE has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Fundamental Global has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares INNOVATE and Fundamental Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-6.35%	N/A	-7.84%
Fundamental Global	N/A	-30.02%	-14.24%

Insider and Institutional Ownership

34.3% of INNOVATE shares are held by institutional investors. Comparatively, 3.1% of Fundamental Global shares are held by institutional investors. 55.5% of INNOVATE shares are held by company insiders. Comparatively, 34.4% of Fundamental Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares INNOVATE and Fundamental Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.11 billion	0.07	-$34.60 million	($5.56)	-0.97
Fundamental Global	$13.26 million	0.24	-$1.15 million	($17.76)	-0.14

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

Analyst Recommendations

This is a summary of recent ratings and price targets for INNOVATE and Fundamental Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
Fundamental Global	0	0	0	0	0.00

Summary

INNOVATE beats Fundamental Global on 8 of the 12 factors compared between the two stocks.

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.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.