Financial comparison between Novation Companies (OTCMKTS:NOVC) and Offerpad Solutions (NYSE:OPAD)


Innovation Companies (OTCMKTS: NOVCGet a rating) and Offerpad Solutions (NYSE: OPADGet a rating) are both small cap finance companies, but which stock is better? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Risk and Volatility

Novation Companies has a beta of 0.49, suggesting its stock price is 51% less volatile than the S&P 500. Comparatively, Offerpad Solutions has a beta of 0.89, suggesting its stock price is 11% less volatile than the S&P 500.

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS), and valuation of Novation Companies and Offerpad Solutions.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Innovation companies $51.35 million 0.00 -9.17 million dollars ($0.04) -0.01
Solutions offers $2.07 billion 0.21 $6.46 million 0.12 14.92

Offerpad Solutions has higher revenue and profit than Novation Companies. Novation Companies trades at a lower price-to-earnings ratio than Offerpad Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of recent ratings and recommendations for Novation companies and Offerpad solutions, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Innovation companies 0 0 0 0 N / A
Solutions offers 0 3 5 0 2.63

Offerpad Solutions has a consensus price target of 7.81, suggesting a potential upside of 336.06%. Given Offerpad Solutions’ possible higher upside, analysts clearly believe that Offerpad Solutions is more favorable than Novation Companies.

Institutional and insider ownership

51.7% of Offerpad Solutions shares are held by institutional investors. 16.7% of Novation Companies shares are held by insiders. Comparatively, 59.3% of Offerpad Solutions’ shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of Novation Companies and Offerpad Solutions.

Net margins Return on equity return on assets
Innovation companies N / A N / A N / A
Solutions offers 1.30% 22.51% 4.96%

Summary

Offerpad Solutions beats Novation Companies on 13 out of 13 factors compared between the two stocks.

About Novation Companies

(Get a rating)

Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced healthcare staffing and related services in Georgia. It also offers its services to hospitals, schools, crisis cells, clinics, medical offices, prisons and various private companies. The company was formerly known as NovaStar Financial, Inc. and changed its name to Novation Companies, Inc. in May 2012. Novation Companies, Inc. was founded in 1996 and is based in Kansas City, Missouri.

About Offerpad Solutions

(Get a rating)

Offerpad Solutions logoOfferpad Solutions Inc., together with its subsidiaries, engages in the purchase, sale, rental and renovation of properties to owners in the United States. It operates iBuying, a real estate solutions platform for on-demand customers. The company offers a customer-centric experience, allowing it to sell and buy homes online with easy access to ancillary services, such as mortgage and title insurance services. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.



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