Comparing Fundamental Global (NASDAQ:FGF) & Star Equity (NASDAQ:STRR)

Star Equity (NASDAQ:STRR) and Fundamental Global (NASDAQ:FGF) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Star Equity has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Fundamental Global has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Star Equity	-3.22%	-2.33%	-1.57%
Fundamental Global	N/A	-30.02%	-14.24%

Earnings and Valuation

This table compares Star Equity and Fundamental Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$140.06 million	0.26	-$4.77 million	($1.58)	-6.68
Fundamental Global	$13.26 million	0.27	-$1.15 million	($17.76)	-0.16

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

Institutional and Insider Ownership

3.8% of Star Equity shares are owned by institutional investors. Comparatively, 3.1% of Fundamental Global shares are owned by institutional investors. 33.5% of Star Equity shares are owned by company insiders. Comparatively, 34.4% of Fundamental Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	2	1	0	0	1.33
Fundamental Global	0	0	0	0	0.00

Star Equity currently has a consensus price target of $5.00, indicating a potential downside of 52.65%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts plainly believe Star Equity is more favorable than Fundamental Global.

Summary

Star Equity beats Fundamental Global on 7 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 Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.