Financial Analysis: INNOVATE (NYSE:VATE) versus First Pacific (OTCMKTS:FPAFY)

INNOVATE (NYSE:VATE) and First Pacific (OTCMKTS:FPAFY) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for INNOVATE and First Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
First Pacific	0	0	0	0	0.00

Profitability

This table compares INNOVATE and First Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-6.35%	N/A	-7.84%
First Pacific	N/A	N/A	N/A

Valuation & Earnings

This table compares INNOVATE and First Pacific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.11 billion	0.07	-$34.60 million	($5.56)	-0.95
First Pacific	$10.06 billion	0.35	$600.30 million	N/A	N/A

First Pacific has higher revenue and earnings than INNOVATE.

Institutional and Insider Ownership

34.3% of INNOVATE shares are owned by institutional investors. Comparatively, 0.0% of First Pacific shares are owned by institutional investors. 55.5% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

INNOVATE has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, First Pacific has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Summary

First Pacific beats INNOVATE on 5 of the 9 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 First Pacific

First Pacific Company Limited, an investment holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Singapore, the Middle East, Africa, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, and fixed line and cellular networks. It also manufactures and distributes a range of food products, including noodles, dairy products, snack foods, food seasonings, nutrition and special foods, beverages, wheat flour, and pasta; breeds seeds; cultivates oil palm, rubber, sugar cane, and other crops; and offers cooking oils, margarines, and shortenings. In addition, the company explores for, mines, and produces gold, copper, and silver; and produces sugar and bioethanol. Further, it is involved in the operation of gas-fired power plant; provision of water distribution, sewerage, and sanitation services; and operation of toll roads and rails, as well as distribution of electricity. First Pacific Company Limited was founded in 1981 and is headquartered in Central, Hong Kong.