Head-to-head review: 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’ll compare the two companies based on earnings strength, dividends, analyst recommendations, valuation, profitability, risk, and institutional ownership.

Insider and Institutional Ownership

51.7% of Offerpad Solutions shares are held by institutional investors. 16.7% of Novation Companies stock is held by insiders of the company. Comparatively, 59.3% of Offerpad Solutions stock is held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

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%

Benefits and evaluation

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Novation Enterprises $51.35 million 0.00 -9.17 million dollars ($0.04) -0.01
Solutions offers $2.07 billion 0.26 $6.46 million 0.12 6:25 p.m.

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.

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.

Analyst Recommendations

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

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

Offerpad Solutions has a consensus target price of 7.72, suggesting a potential upside of 252.61%. Given Offerpad Solutions’ likely higher upside, analysts clearly believe that Offerpad Solutions is more favorable than Novation Companies.

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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