Quanta Services (NYSE:PWR) versus INNOVATE (NYSE:VATE) Head-To-Head Analysis

INNOVATE (NYSE:VATE) and Quanta Services (NYSE:PWR) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

INNOVATE has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares INNOVATE and Quanta Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-1.48%	N/A	-2.35%
Quanta Services	4.03%	20.55%	7.34%

Valuation and Earnings

This table compares INNOVATE and Quanta Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.52 billion	0.06	-$60.60 million	($1.87)	-3.77
Quanta Services	$32.91 billion	2.80	$1.03 billion	$8.73	70.12

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

Analyst Recommendations

This is a summary of current recommendations and price targets for INNOVATE and Quanta Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
Quanta Services	3	7	21	2	2.67

Quanta Services has a consensus price target of $767.72, indicating a potential upside of 25.41%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts clearly believe Quanta Services is more favorable than INNOVATE.

Institutional and Insider Ownership

34.3% of INNOVATE shares are held by institutional investors. Comparatively, 90.5% of Quanta Services shares are held by institutional investors. 57.7% of INNOVATE shares are held by company insiders. Comparatively, 0.6% of Quanta Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Quanta Services beats INNOVATE on 13 of the 15 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 Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.