Head-To-Head Comparison: INNOVATE (NYSE:VATE) versus Alset (NASDAQ:AEI)

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

Earnings and Valuation

This table compares INNOVATE and Alset”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.11 billion	0.06	-$34.60 million	($5.56)	-0.93
Alset	$21.12 million	4.27	-$3.97 million	($1.19)	-1.95

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

Analyst Ratings

This is a breakdown of current recommendations for INNOVATE and Alset, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
Alset	1	0	0	0	1.00

Risk & Volatility

INNOVATE has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Alset has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

34.3% of INNOVATE shares are held by institutional investors. Comparatively, 2.7% of Alset shares are held by institutional investors. 55.5% of INNOVATE shares are held by insiders. Comparatively, 90.3% of Alset shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares INNOVATE and Alset’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%
Alset	-105.02%	-12.09%	-11.50%

Summary

INNOVATE beats Alset on 7 of the 11 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 Alset

Alset Inc. engages in the real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products businesses in the United States, Singapore, Hong Kong, Australia, and South Korea. It operates through four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities segments. The Real Estate segment develops property projects and participates in third-party property development projects; and owns, operates, and manages real estate development projects with a focus on land subdivision developments and house rental projects. Its Digital Transformation Technology segment provides support, implementation, and development services with various technologies, including blockchain, e-commerce, social media, and artificial intelligent customer service application and metaverse services. Its technology platform focuses on business-to-business solutions, such as communications and workflow through instant messaging systems, social media, e-commerce and payment systems, direct marketing platforms, e-real estate, brand protection, and counterfeit and fraud detection; and mobile application product development and other businesses, including information technology services to end-users, service providers, and other commercial users through multiple platforms. The Biohealth segment engages in developing, researching, testing, manufacturing, licensing, and distributing biohealth products and services. Its Other Business Activities segment offers corporate strategy and business development, asset management, corporate restructuring, and leveraged buy-out expertise services. It operates cafes in Singapore and South Korea. The company was formerly known as Alset EHome International Inc. and changed its name to Alset Inc. in October 2022. The company was incorporated in 2018 and is headquartered in Bethesda, Maryland.