Head-To-Head Contrast: INNOVATE (NYSE:VATE) & Great Elm Group (NASDAQ:GEG)

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

Volatility & Risk

Great Elm Group has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, INNOVATE has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

52.8% of Great Elm Group shares are owned by institutional investors. Comparatively, 34.3% of INNOVATE shares are owned by institutional investors. 49.7% of Great Elm Group shares are owned by insiders. Comparatively, 55.5% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Great Elm Group and INNOVATE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Elm Group	1	0	0	0	1.00
INNOVATE	1	0	0	0	1.00

Profitability

This table compares Great Elm Group and INNOVATE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Elm Group	-60.61%	-37.04%	-18.39%
INNOVATE	-4.86%	N/A	-6.69%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Elm Group	$16.32 million	4.11	$12.89 million	($0.54)	-3.80
INNOVATE	$1.25 billion	0.13	-$60.60 million	($4.85)	-2.47

Great Elm Group has higher earnings, but lower revenue 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 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.

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.