Head-To-Head Analysis: Shanghai Industrial (OTCMKTS:SGHIY) & Star Equity (NASDAQ:STRR)

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

Risk & Volatility

Shanghai Industrial has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shanghai Industrial	N/A	N/A	N/A
Star Equity	-2.81%	-3.81%	-2.84%

Insider and Institutional Ownership

3.8% of Star Equity shares are owned by institutional investors. 10.4% of Star Equity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shanghai Industrial	$3.71 billion	0.43	$359.94 million	N/A	N/A
Star Equity	$140.06 million	0.20	-$4.77 million	($1.30)	-7.85

Shanghai Industrial has higher revenue and earnings than Star Equity.

Analyst Recommendations

This is a summary of current recommendations and price targets for Shanghai Industrial and Star Equity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shanghai Industrial	0	0	0	0	0.00
Star Equity	0	1	0	0	2.00

Star Equity has a consensus price target of $5.00, indicating a potential downside of 50.98%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts clearly believe Star Equity is more favorable than Shanghai Industrial.

Summary

Shanghai Industrial beats Star Equity on 6 of the 11 factors compared between the two stocks.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.

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.