INNOVATE (NYSE:VATE – Get Free Report) and Granite Construction (NYSE:GVA – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
34.3% of INNOVATE shares are held by institutional investors. 57.7% of INNOVATE shares are held by company insiders. Comparatively, 0.9% of Granite Construction shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares INNOVATE and Granite Construction’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| INNOVATE | -1.48% | N/A | -2.35% |
| Granite Construction | -3.32% | 27.83% | 7.17% |
Volatility & Risk
INNOVATE has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for INNOVATE and Granite Construction, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| INNOVATE | 1 | 0 | 0 | 0 | 1.00 |
| Granite Construction | 2 | 1 | 2 | 1 | 2.33 |
Granite Construction has a consensus price target of $158.50, suggesting a potential upside of 41.83%. Given Granite Construction’s stronger consensus rating and higher probable upside, analysts plainly believe Granite Construction is more favorable than INNOVATE.
Earnings & Valuation
This table compares INNOVATE and Granite Construction”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| INNOVATE | $1.25 billion | 0.07 | -$60.60 million | ($1.87) | -3.19 |
| Granite Construction | $4.42 billion | 1.11 | $193.00 million | ($4.31) | -25.93 |
Granite Construction has higher revenue and earnings than INNOVATE. Granite Construction is trading at a lower price-to-earnings ratio than INNOVATE, indicating that it is currently the more affordable of the two stocks.
Summary
Granite Construction beats INNOVATE on 9 of the 14 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 Granite Construction
Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.
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