Reviewing eXp World (EXPI) & Novation Companies (NOVC)

eXp World (NASDAQ:EXPI) and Novation Companies (OTCMKTS:NOVC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares eXp World and Novation Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eXp World -4.48% -120.59% -52.49%
Novation Companies 11.12% -9.65% 19.45%

Earnings & Valuation

This table compares eXp World and Novation Companies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eXp World $500.15 million 1.24 -$22.43 million ($0.39) -26.10
Novation Companies $55.13 million 0.10 $6.13 million N/A N/A

Novation Companies has lower revenue, but higher earnings than eXp World.

Volatility & Risk

eXp World has a beta of 5.15, indicating that its share price is 415% more volatile than the S&P 500. Comparatively, Novation Companies has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

5.2% of eXp World shares are held by institutional investors. Comparatively, 0.5% of Novation Companies shares are held by institutional investors. 47.2% of eXp World shares are held by insiders. Comparatively, 17.3% of Novation Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for eXp World and Novation Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eXp World 0 0 3 0 3.00
Novation Companies 0 0 0 0 N/A

eXp World presently has a consensus target price of $20.00, suggesting a potential upside of 96.46%. Given eXp World’s higher possible upside, equities analysts clearly believe eXp World is more favorable than Novation Companies.

Summary

eXp World beats Novation Companies on 7 of the 11 factors compared between the two stocks.

About eXp World

eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The company facilitates buyers to search real-time property listings and sellers to list their properties through its Website; and provides buyers and sellers access to a network of professional, consumer-centric agents, and brokers. It also offers access to collaborative tools and training services for real estate brokers and agents. In addition, the company provides marketing, training, and other support services to its brokers and agents through a proprietary technology enabled services, and technology and support services contracted to third parties. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was founded in 2008 and is based in Bellingham, Washington.

About Novation Companies

Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia. It also owns a portfolio of mortgage securities. 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.

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