Financial Analysis: Novation Companies (OTCMKTS:NOVC) versus La Rosa (NASDAQ:LRHC)

Valuation and Earnings

This table compares La Rosa and Novation Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
La Rosa	$63.17 million	0.22	-$7.82 million	($1.70)	-0.41
Novation Companies	$51.35 million	0.00	-$9.17 million	N/A	N/A

La Rosa has higher revenue and earnings than Novation Companies.

Profitability

This table compares La Rosa and Novation Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
La Rosa	-24.46%	-153.74%	-89.56%
Novation Companies	N/A	N/A	N/A

Insider & Institutional Ownership

7.6% of La Rosa shares are held by institutional investors. 45.5% of La Rosa shares are held by company insiders. Comparatively, 16.7% of Novation Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

La Rosa has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Novation Companies has a beta of -7.33, meaning that its share price is 833% less volatile than the S&P 500.

Summary

La Rosa beats Novation Companies on 5 of the 8 factors compared between the two stocks.

About La Rosa

La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.

About Novation Companies

Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services in Georgia. It also offers its services to hospitals, schools, crisis units, clinics, doctors' offices, prisons, and various privately owned businesses. 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.