Contrasting Star Equity (STRR) and Its Competitors

Star Equity (NASDAQ:STRR) is one of 204 public companies in the “Professional Services” industry, but how does it compare to its rivals? We will compare Star Equity to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Star Equity and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Equity	-4.14%	-5.98%	-3.38%
Star Equity Competitors	0.35%	36.04%	4.43%

Insider and Institutional Ownership

3.8% of Star Equity shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 31.6% of Star Equity shares are owned by company insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Star Equity and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	2	0	1	1	2.25
Star Equity Competitors	1620	6511	9186	435	2.48

Star Equity presently has a consensus target price of $28.00, indicating a potential upside of 175.59%. As a group, “Professional Services” companies have a potential upside of 26.72%. Given Star Equity’s higher possible upside, equities research analysts plainly believe Star Equity is more favorable than its rivals.

Valuation & Earnings

This table compares Star Equity and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Star Equity	$172.16 million	-$5.92 million	-3.32
Star Equity Competitors	$3.29 billion	$228.40 million	32.41

Star Equity’s rivals have higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Star Equity has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Star Equity’s rivals have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Summary

Star Equity rivals beat Star Equity on 10 of the 13 factors compared.

About Star Equity

Star Equity Holdings, Inc. is a diversified holding company that owns and operates businesses in the building products and construction sectors, alongside investment activities. Its operating businesses serve customers in the United States. Through its building solutions operations, the company manufactures products used in residential and commercial construction, including structural wall panels, modular building components and engineered wood products. These offerings are intended to support builders with construction components made for off-site production and installation.