Star Equity (NASDAQ:STRR – Get Free Report) and Addentax Group (NASDAQ:ATXG – Get Free Report) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Analyst Ratings
This is a summary of recent recommendations for Star Equity and Addentax Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 2 | 1 | 0 | 0 | 1.33 |
| Addentax Group | 1 | 0 | 0 | 0 | 1.00 |
Star Equity currently has a consensus price target of $5.00, suggesting a potential downside of 53.10%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts clearly believe Star Equity is more favorable than Addentax Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $140.06 million | 0.26 | -$4.77 million | ($1.58) | -6.75 |
| Addentax Group | $4.18 million | 1.42 | -$5.09 million | ($0.59) | -0.86 |
Star Equity has higher revenue and earnings than Addentax Group. Star Equity is trading at a lower price-to-earnings ratio than Addentax Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Star Equity has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Insider & Institutional Ownership
3.8% of Star Equity shares are owned by institutional investors. Comparatively, 10.1% of Addentax Group shares are owned by institutional investors. 10.4% of Star Equity shares are owned by company insiders. Comparatively, 4.9% of Addentax Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Star Equity and Addentax Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -3.22% | -2.33% | -1.57% |
| Addentax Group | -96.23% | -18.12% | -9.95% |
Summary
Star Equity beats Addentax Group on 8 of the 13 factors compared between the two stocks.
About Star Equity
Star Equity Holdings, Inc. engages in the construction business in the United States and internationally. It operates through two segments: Construction, and Investments. It manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.
About Addentax Group
Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.
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