INNOVATE (NYSE:VATE – Get Free Report) and Great Elm Group (NASDAQ:GEG – Get Free Report) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for INNOVATE and Great Elm Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| INNOVATE | 1 | 0 | 0 | 0 | 1.00 |
| Great Elm Group | 1 | 0 | 0 | 0 | 1.00 |
Volatility and Risk
INNOVATE has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Great Elm Group has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| INNOVATE | -4.86% | N/A | -6.69% |
| Great Elm Group | -60.61% | -37.04% | -18.39% |
Insider and Institutional Ownership
34.3% of INNOVATE shares are owned by institutional investors. Comparatively, 52.8% of Great Elm Group shares are owned by institutional investors. 55.5% of INNOVATE shares are owned by company insiders. Comparatively, 49.7% of Great Elm Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares INNOVATE and Great Elm Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| INNOVATE | $1.25 billion | 0.12 | -$60.60 million | ($4.85) | -2.28 |
| Great Elm Group | $16.32 million | 4.35 | $12.89 million | ($0.54) | -4.02 |
Great Elm Group has lower revenue, but higher earnings than INNOVATE. Great Elm Group is trading at a lower price-to-earnings ratio than INNOVATE, indicating that it is currently the more affordable of the two stocks.
Summary
INNOVATE beats Great Elm Group 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 Great Elm Group
Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.
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