INV vs XOMA

For growth investors, XOMA Royalty Corp.

(XOMA) is the stronger pick with 83. 1% revenue growth year-over-year, versus 9. 2% for Innventure, Inc. (INV). XOMA Royalty Corp. (XOMA) offers the better valuation at 28. 3x trailing P/E (36. 7x forward), making it the more compelling value choice. Analysts rate XOMA Royalty Corp. (XOMA) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, XOMA Royalty Corp.

(XOMA) delivered a total return of +30. 0%, compared to -37. 9% for Innventure, Inc. (INV). Over 10 years, the gap is even starker: XOMA returned +186. 7% versus INV's -37. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), XOMA Royalty Corp.

(XOMA) is the lower-risk stock at 1. 21β versus Innventure, Inc. 's 2. 63β — meaning INV is approximately 117% more volatile than XOMA relative to the S&P 500. On balance sheet safety, Innventure, Inc. (INV) carries a lower debt/equity ratio of 4% versus 157% for XOMA Royalty Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), XOMA Royalty Corp.

(XOMA) is pulling ahead at 83. 1% versus 9. 2% for Innventure, Inc. (INV). On earnings-per-share growth, the picture is similar: XOMA Royalty Corp. grew EPS 188. 5% year-over-year, compared to -143. 1% for Innventure, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

XOMA Royalty Corp.

(XOMA) is the more profitable company, earning 60. 8% net margin versus -64. 1% for Innventure, Inc. — meaning it keeps 60. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XOMA leads at 21. 8% versus -63. 2% for INV. At the gross margin level — before operating expenses — XOMA leads at 94. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for XOMA: 30.

2% to $53. 75.

All stocks in this comparison pay dividends.

XOMA Royalty Corp. (XOMA) offers the highest yield at 0. 7%, versus 0. 2% for Innventure, Inc. (INV).

For long-horizon retirement investors, XOMA Royalty Corp.

(XOMA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 21), 0. 7% yield, +186. 7% 10Y return). Innventure, Inc. (INV) carries a higher beta of 2. 63 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (XOMA: +186. 7%, INV: -37. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (INV (Financial Services) and XOMA (Healthcare)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: INV is a small-cap quality compounder stock; XOMA is a small-cap high-growth stock. XOMA pays a dividend while INV does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.