Star Equity (NASDAQ:STRR – Get Free Report) and La Rosa (NASDAQ:LRHC – Get Free Report) are both small-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Earnings & Valuation
This table compares Star Equity and La Rosa”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $140.06 million | 0.18 | -$4.77 million | ($1.30) | -7.21 |
| La Rosa | $69.45 million | 0.16 | -$14.45 million | ($477.55) | -0.02 |
Institutional and Insider Ownership
3.8% of Star Equity shares are held by institutional investors. Comparatively, 7.6% of La Rosa shares are held by institutional investors. 10.4% of Star Equity shares are held by company insiders. Comparatively, 26.4% of La Rosa shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Star Equity and La Rosa’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -2.81% | -3.81% | -2.84% |
| La Rosa | -31.93% | -155.71% | -79.10% |
Analyst Recommendations
This is a summary of current ratings for Star Equity and La Rosa, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 0 | 1 | 0 | 0 | 2.00 |
| La Rosa | 0 | 0 | 0 | 0 | 0.00 |
Star Equity presently has a consensus price target of $5.00, indicating a potential downside of 46.64%. Given Star Equity’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Star Equity is more favorable than La Rosa.
Risk & Volatility
Star Equity has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, La Rosa has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.
Summary
Star Equity beats La Rosa on 9 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 La Rosa
La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.
Receive News & Ratings for Star Equity Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Star Equity and related companies with MarketBeat.com's FREE daily email newsletter.
