INNOVATE (NYSE:VATE) & JFB Construction (NASDAQ:JFB) Head to Head Analysis

JFB Construction (NASDAQ:JFB) and INNOVATE (NYSE:VATE) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

34.3% of INNOVATE shares are held by institutional investors. 57.7% of INNOVATE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

JFB Construction has a beta of 3.36, suggesting that its share price is 236% more volatile than the S&P 500. Comparatively, INNOVATE has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.

Profitability

This table compares JFB Construction and INNOVATE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JFB Construction	-25.19%	-28.42%	-25.03%
INNOVATE	-1.48%	N/A	-2.35%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for JFB Construction and INNOVATE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFB Construction	1	1	2	0	2.25
INNOVATE	1	0	0	0	1.00

JFB Construction presently has a consensus price target of $9.50, indicating a potential upside of 92.11%. Given JFB Construction’s stronger consensus rating and higher probable upside, equities research analysts plainly believe JFB Construction is more favorable than INNOVATE.

Valuation & Earnings

This table compares JFB Construction and INNOVATE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFB Construction	$42.70 million	2.34	-$5.27 million	($0.54)	-9.16
INNOVATE	$1.25 billion	0.05	-$60.60 million	($1.87)	-2.61

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

About JFB Construction

JFB Construction Holdings, Inc. provides construction services through its JFB Construction business. Its work includes general contracting, construction management, design-build services, renovations and remodeling. The company serves clients in South Florida, including the Miami area. Its services support construction and improvement projects across residential and commercial properties. JFB Construction focuses on coordinating projects from planning and construction through renovation, working with clients and other project participants to deliver building services.

About INNOVATE

INNOVATE Corp. is a diversified holding company that owns and operates businesses in infrastructure, life sciences and broadcasting. The company was formerly known as HC2 Holdings and adopted the INNOVATE name in 2021. Its infrastructure operations include DBM Global, which provides steel construction, fabrication and related industrial services for projects such as commercial buildings, bridges and industrial facilities. These services are delivered in the United States and select international markets.