Reviewing Star Equity (NASDAQ:STRR) and CBIZ (NYSE:CBZ)

CBIZ (NYSE:CBZ – Get Free Report) and Star Equity (NASDAQ:STRR – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

87.4% of CBIZ shares are owned by institutional investors. Comparatively, 3.8% of Star Equity shares are owned by institutional investors. 4.1% of CBIZ shares are owned by company insiders. Comparatively, 31.6% of Star Equity shares are owned by company 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 Ratings

This is a breakdown of current ratings and target prices for CBIZ and Star Equity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBIZ 0 7 1 0 2.12
Star Equity 1 1 1 1 2.50

CBIZ currently has a consensus price target of $44.50, suggesting a potential downside of 18.76%. Star Equity has a consensus price target of $28.00, suggesting a potential upside of 171.98%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts clearly believe Star Equity is more favorable than CBIZ.

Earnings & Valuation

This table compares CBIZ and Star Equity”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBIZ $2.76 billion 1.08 $115.44 million $2.14 25.60
Star Equity $172.16 million 0.22 -$5.92 million ($3.06) -3.36

CBIZ has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CBIZ has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Profitability

This table compares CBIZ and Star Equity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBIZ 4.73% 12.33% 5.02%
Star Equity -4.35% -4.21% -2.39%

Summary

CBIZ beats Star Equity on 10 of the 14 factors compared between the two stocks.

About CBIZ

(Get Free Report)

CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.

About Star Equity

(Get Free Report)

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.

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