Comparing INNOVATE (NYSE:VATE) & Fundamental Global (NASDAQ:FGF)

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

Analyst Ratings

This is a summary of current recommendations for Fundamental Global and INNOVATE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fundamental Global	0	0	0	0	0.00
INNOVATE	1	0	0	0	1.00

Risk and Volatility

Fundamental Global has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, INNOVATE has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Profitability

This table compares Fundamental Global and INNOVATE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fundamental Global	N/A	-30.02%	-14.24%
INNOVATE	-6.35%	N/A	-7.84%

Institutional and Insider Ownership

3.1% of Fundamental Global shares are held by institutional investors. Comparatively, 34.3% of INNOVATE shares are held by institutional investors. 34.4% of Fundamental Global shares are held by insiders. Comparatively, 55.5% of INNOVATE shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Fundamental Global and INNOVATE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fundamental Global	$13.26 million	0.17	-$1.15 million	($17.76)	-0.10
INNOVATE	$1.11 billion	0.07	-$34.60 million	($5.56)	-0.96

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

Summary

INNOVATE beats Fundamental Global on 8 of the 12 factors compared between the two stocks.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.

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.