Head-To-Head Survey: Star Equity (NASDAQ:STRR) versus Great Elm Group (NASDAQ:GEG)

Star Equity (NASDAQ:STRR) and Great Elm Group (NASDAQ:GEG) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Analyst Ratings

This is a summary of recent ratings and price targets for Star Equity and Great Elm Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	0	0	1	0	3.00
Great Elm Group	0	0	0	0	0.00

Star Equity currently has a consensus target price of $5.00, suggesting a potential upside of 148.76%. Given Star Equity’s stronger consensus rating and higher possible upside, research analysts clearly believe Star Equity is more favorable than Great Elm Group.

Insider & Institutional Ownership

3.8% of Star Equity shares are held by institutional investors. Comparatively, 52.8% of Great Elm Group shares are held by institutional investors. 33.5% of Star Equity shares are held by company insiders. Comparatively, 51.8% of Great Elm Group shares are held 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.

Risk & Volatility

Star Equity has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Great Elm Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Star Equity and Great Elm Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$57.17 million	0.11	-$10.44 million	($3.43)	-0.59
Great Elm Group	$17.83 million	3.43	-$1.39 million	($0.07)	-31.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Star Equity	-16.43%	-8.24%	-3.48%
Great Elm Group	-6.42%	-1.82%	-0.91%

Summary

Great Elm Group beats Star Equity on 8 of the 14 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 Great Elm Group

Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.