Orion Group Holdings, Inc. (ORN) vs INNOVATE Corp. (VATE)

Orion Group Holdings, Inc. and INNOVATE Corp. are both Engineering & Construction companies. Orion Group Holdings, Inc. is the larger, with a market value of $345.0M against $102.6M — 3.4× the size. INNOVATE Corp. has negative trailing earnings, so its P/E is not meaningful; Orion Group Holdings, Inc. trades at 90.4×. INNOVATE Corp. grew revenue faster over the last twelve months: 52.4% against 7.05%. Orion Group Holdings, Inc. has the higher net margin (0.40% vs −1.58%) and the lower return on invested capital (1.92% vs 13.1%). Across the 20 metrics below, INNOVATE Corp. leads on 14 and Orion Group Holdings, Inc. on 6.

Valuation

Metric ORN VATE Engineering & Construction median
P/E 90.41 n/m 28.59
P/S 0.39 0.07 1.15
P/B 2.11 n/m 3.96
Price to free cash flow 55.84 0.98 25.24
EV/EBITDA 11.19 5.21 14.87
EV/Sales 0.50 0.42 1.42
Earnings yield 1.11% (23.68%) 2.47%
Free cash flow yield 1.79% 102.29% 1.91%

Profitability

Metric ORN VATE Engineering & Construction median
Gross margin 11.78% 15.93% 18.76%
Operating margin 0.92% 4.28% 6.26%
Net margin 0.40% (1.58%) 2.23%
Free cash flow margin 0.69% 7.01% 1.83%
Return on equity 2.27% 11.03% 7.90%
Return on assets 0.78% (2.53%) 0.87%
Return on invested capital 1.92% 13.11% 2.52%

Growth

Metric ORN VATE Engineering & Construction median
Revenue growth (TTM) 7.05% 52.38% 16.67%
EPS growth (last fiscal year) 220.00% (57.14%) —
Revenue growth, 5-year CAGR 3.72% 11.69% 11.76%
Net income growth, 5-year CAGR (34.23%) 0.00% 0.00%

Health

Metric ORN VATE Engineering & Construction median
Debt to equity 0.65 (2.81) 0.40
Current ratio 1.52 0.44 1.39
Net debt to EBITDA 0.23 6.64 0.38

Dividend

Metric ORN VATE Engineering & Construction median
Dividend yield 1.87% — 0.65%
Payout ratio 0.00 0.00 0.00

Size

Metric ORN VATE Engineering & Construction median
Market cap 345.02m 102.59m 1.31b

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